May 13, 2026 Airport Advisory Commission

UH, WANNA WELCOME EVERYONE ON, UH, VIRTUALLY ALSO, UM, THAT'S ON THE SCREEN.

I BELIEVE WE HAVE JEFF ELLER, UH, ALSO JONATHAN C**N, LYNN HENDRICKS, AND I THINK THAT'S IT.

UH, MOVE ON TO, UH, ITEM, UH, NUMBER FOUR.

THANK YOU FOR BEING HERE.

AND DON'T HESITATE, HESITATE TO CLIFF CHU.

OH, THERE'S CLIFFORD.

I'M SORRY, MR. CHU.

GOOD TO SEE YOU.

COMMISSIONER CHU.

NOW, NOW YOU WIN THE AWARD TODAY FOR BEING UP THE EARLIEST.

IT'S FIVE O'CLOCK, I THINK, WHERE YOU ARE IF YOU'RE STILL IN TOKYO.

SO, I'M IN TOKYO.

THANK YOU, .

WELL, THANK YOU FOR JOINING US.

YOU WIN THE AWARD FOR TODAY.

ALRIGHT, SO WE'RE GONNA,

[2. Briefing on March 2026 Financial Results presented by Rajeev Thomas, Chief Financial Officer ]

WE'RE GONNA BEGIN ON PAGE 12 WITH STAFF BRIEFINGS, BRIEFING OF MARCH, 2026, FINANCIAL RESULTS PRESENTED BY RAJIV THOMAS, OUR CHIEF FINANCIAL OFFICER.

HI, GOOD AFTERNOON, CHAIR AND COMMISSIONERS.

UH, RAJIV THOMAS, UH, CHIEF FINANCIAL OFFICER, UH, WITH THE AUSTIN AVIATION.

UM, I'LL START WITH THE STATS AND THEN JUST GO OVER THE YEAR OVER YEAR, UH, NUMBERS AND THEN THE COMPARISON TO BUDGET.

SO, UH, MARCH IS OBVIOUSLY AFFECTED BY SOUTHWEST SOUTH BY SOUTHWEST IS IS A BUSY MONTH FOR THE AIRPORT.

UM, OUR UNEMPLOYMENTS WERE UP 6% AND YEAR TO DATE, WE ARE, WE ARE TRACKING TO 5.6%.

UM, AND OUR LANDED WEIGHTS WERE UP 10%.

AND YEAR TO DATE, OUR LANDED WEIGHTS ARE 7.7% HIGHER THAN PRIOR YEAR.

CARGO TONNAGE ALSO SHOWED AN IMPROVEMENT IN THE MONTH OF MARCH, UH, UP ABOUT 0.5%.

AND, UH, YEAR TO DATE, UH, DOWN ABOUT 2.2%.

SO ALL THAT TO SAY THAT THE, THE REVENUES, UH, FOR YEAR OVER YEAR REVENUES WERE FAVORABLE, UH, UP 29% OR, OR ALMOST 30% VERSUS LAST YEAR OR $9 MILLION.

UH, WE SAW, YOU KNOW, YOU KNOW, TRANSACTIONS BEING HIGHER THAN, AND LAST YEAR, FOR EXAMPLE, IN PARKING TRANSACTIONS WERE UP ABOUT 6%.

AND, UH, GROUND TRANSPORTATION WERE UP ABOUT 7% TOO.

SO, UH, OVERALL, GOODYEAR IN GOOD MONTH, I SHOULD SAY, IN TERMS OF THE, UM, NON AIRLINE REVENUE COMPONENTS AND THE AIRLINE REVENUE TOO.

SO, YEAR TO DATE ON THE, ON THE REVENUES, WE ARE UP ABOUT $46 MILLION OR 27% HIGHER THAN THE PREVIOUS YEAR, YEAR TO DATE.

ON THE OPERATING EXPENSE SIDE, UM, THE OPERATING EXPENSES ARE UP ABOUT 8% FOR THE MONTH OF, UH, MARCH.

AND YEAR TO DATE, IT'S ABOUT 9.2%.

BUT STILL, UH, IF YOU LOOK AT IT, UH, YOU KNOW, THE BOTTOM LINE, UH, THE SURPLUS YOU CAN SEE YEAR TO DATE FOR THE MONTH OF, UH, MARCH, UH, WE ARE UP 8.3 MILLION OVER PRIOR YEAR, 16.6 MILLION IN SURPLUS REVENUES VERSUS 8.3 THE PRIOR YEAR AND YEAR TO DATE, WE ARE, UH, HIGHER BY 36 MILLION OVER, UM, LAST YEAR ON THE WE'RE.

SO HOW THAT TRANSLATES TO VERSUS BUDGET IS ON THE OPERATING REVENUE SIDE, WE ARE FAVORABLE TO BUDGET BY $7 MILLION.

STILL, OUR OPERATING EXPENSES COMPARED TO BUDGET IS UNFAVORABLE ABOUT 0.4% OR $342,000.

BUT THE TOTAL REQUIREMENTS, AS YOU CAN SEE, IS FAVORABLE BY ABOUT 145, MILLION HUNDRED $45,000 OR 0.1%.

AND OUR SURPLUS REVENUES ARE TRACKING ABOUT 7.3 MILLION HIGHER THAN WHAT WE BUDGETED.

SO MOST OF THAT COMING FROM THE FAVORABILITY IN THE, ON THE REVENUE SIDE.

ANY QUESTIONS?

[00:05:11]

UH, ANY COMMENTS OR QUESTIONS MR. THOMAS? NO, NOT.

A BRIEFING ON APRIL, 2026, REVENUE BOND SALE PROVIDED BY MR. THOMAS THOMAS, UH, CHIEF FINANCIAL OFFICER.

THANK YOU MR. THOMAS.

AND I KNOW, UH, MR. THOMAS ALSO GONNA BE DOING

[3. Briefing on April 2026 Revenue Bond Sale provided by Rajeev Thomas, Chief Financial Officer ]

AND OTHERS? ANYTHING YOU CARE TO SHARE SINCE THIS IS THE BEGINNING OF WHAT WILL BE A SERIES OF BONDS? SURE.

UM, SO AS YOU KNOW, WE HAD, UH, PREVIOUS TO THE BOND ISSUANCE, WE HAD COME TO THE IN BEFORE THE, THE COMMISSION AND KIND OF, UM, GAVE A PREVIEW ON HOW MUCH WE WERE GOING TO OFFER IN TERMS OF THE, THE BOND ISSU ISSUANCE.

SO WE DID, OUR PAR WAS $1.15 BILLION.

UM, AND WE PRICED THE BONDS ON APRIL, UH, 14TH, UM, AND WE CLOSED ON MAY 5TH.

SO IT, IT IS, SO THE ONE POINT FUND, ONE 5 BILLION IS SPLIT INTO TWO SERIES.

ONE IS NON A MT, WHICH IS $300 MILLION, AND THE OTHER IS AN A MT PORTION OF IT, WHICH IS $850 MILLION.

THE NON A MT PORTION FINANCES, THE YELLOW PARKING GARAGE, AND THE MIDFIELD TAXIWAY.

AND THE A MT PORTION WILL FINANCE, YOU KNOW, THE CONCOURSE B AD HALL COMPONENTS DESIGNS OF THE, UH, CONCOURSE B AND THE AD AD HALL, AND ALSO OUR CENTRAL UTILITY PLANT.

AND, UH, THE UICW, WHICH IS A UTILITY INFRASTRUCTURE, CAMPUS-WIDE PROJECTS, ALMOST ALL THE EXPENDITURES THAT WE FORECAST TO, TO, UM, TO SPEND IN FISCAL YEAR 26 AND 27 IS WHAT IS COVERED BY THIS BOND ISSUANCE.

SO JUST, UM, SOME FACTS ABOUT THIS BOND ISSUANCE.

THIS WAS THE LARGEST, UH, BOND TRANSACTION IN THE CITY OF AUSTIN HISTORY.

UM, WE DID THE INVESTOR ROADSHOW, UM, EARLY APRIL.

I MEAN, RIGHT BEFORE WE CLOSED, THE WEEK BEFORE WE CLOSED, UH, WE WENT OUT TO BOSTON, NEW JERSEY, UM, NEW YORK AND PENNSYLVANIA MET WITH ABOUT 11 INDIVIDUAL, UM, ASSET MANAGERS.

AND OUT OF THOSE ONE-ON-ONE MEETINGS, UH, WE GENERATED ABOUT $681 MILLION IN ORDERS.

UH, FROM THOSE, UH, WE HAD, UH, 95 UNIQUE ACCOUNTS THAT INVESTED IN THE BONDS.

UH, WE HAD $3.1 BILLION WORTH OF ORDERS, SO IT WAS 2.7 TIMES SUBSCRIBED.

UM, AND, UH, SOME OF THE LARGEST, UH, BUYERS WERE, YOU KNOW, PIMCO WAS A LARGE BUYER WITH ALMOST $429 MILLION IN ORDERS AND BLA BLACKROCK'S FIDELITY AND WELLINGTON ASSET MANAGEMENTS, ET CETERA, WITH SOME OF THE BIG, UM, THE ORDERS THAT, THAT WE GOT FROM THAT ON HOW THE, THE BOND TRANSACTION FARED.

WE ARE VERY HAPPY WITH HOW IT FARED.

UM, OUR, TO OUR ALL AND TRUE INTEREST COST IS ABOUT 4.59%.

UM, THAT IS ON THE NON A MT SIDE IS 4.24%.

AND ON THE A MT SIDE IS 4.6899999999999995%, SO BLENDED 4.959%.

UM, AND, UH, I JUST WANT TO GIVE A THANKS OUT TO OUR TREASURY DEPARTMENT AND BELINDA WEAVER, WHO WAS OUR TREASURER, YOU KNOW, DURING PRICING, WE HELD THE COUPON RATES, UH, DOWN.

I MEAN, WE DIDN'T GO TO 5.5%.

WE, THE HIGHEST WE WENT WAS FIVE POINT A QUARTER, AND WE LEFT, UH, A LOT OF IT AT THE 5% COUPON RATE.

SO WE WERE VERY TIGHT ON HOW WE PRICE THE BONDS AND THE SPREADS VERSUS MMD THAT THE BONDS WERE PRICED IN.

UM, AND ALSO THE RATING AGENCIES, UM, AFFIRMED THE RATINGS.

UM, YOU KNOW, WE, WE TOLD THEM WHAT THE CAPITAL PROGRAM WAS GONNA CAUSE US A FIVE AND A HALF BILLION DOLLAR PROGRAM.

SO THE RATING AGENCIES, ONCE WE MET WITH THEM, AFFIRMED THE RATINGS, PROVIDED A STABLE OUTLOOK, KEPT THE RATINGS THE SAME.

SO, UM, ALL IN ALL, VERY GOOD QUESTION, QUESTION, MR. CHU, MR. CHU, UH, UH, MR. THOMAS, CONGRATULATIONS TO YOU AND THE TREASURY TEAM.

THAT'S A WONDERFUL LANDMARK FOR, FOR THE CITY.

AND I JUST WONDER, UH, WHAT'S OUR LONG-TERM CREDIT RATING FOR REFERENCE? AND ALSO, I UNDERSTAND THAT THE WATER, UH, CAME OUT AFTERWARDS.

ARE THEY ALSO PLANNING IN THE NEXT SEVERAL YEARS TO HAVE A SIMILAR BILLION OR SO? ARE WE CONCERNED ABOUT TIMING, ABOUT CROWDING

[00:10:01]

UM, SO THE, THE AUSTIN WATER DID ISSUE BONDS ABOUT TWO WEEKS BEFORE US.

UM, I, I DON'T KNOW THE SIZE OF THEIR ISSUANCE, UH, BUT YOU KNOW, OUR TREASURY HAD A GOOD IDEA ON INVESTOR INTEREST.

I MEAN, THEIR BONDS ARE, I THINK MAYBE AA RATED I RATED THAN AIRPORT BONDS.

UM, SO GOING INTO OUR PRICING, WE KIND OF KNEW THE MARKET WELL, I SHOULD SAY FROM, YOU KNOW, THE DEMAND FOR THE MUNIS AND WHERE WE NEEDED TO PRICE THE SPREAD.

SO THAT KIND OF INFORMED HOW WE WERE GONNA PRICE THE, THE BONDS.

BUT WHEN WE LOOK AT THE AIRPORT ISSUANCES, UH, YOU KNOW, WE WORK WITH TREASURIES ON WHEN WE SCHEDULE THOSE ISSUANCES, AND WE ARE ALSO LOOKING AT THE CALENDAR, RIGHT, THE ECONOMIC CALENDAR, WHAT NEWS IS COMING OUT.

SO THE WEEK THAT WE CHOSE, UM, WE WERE VERY WARY OF WHEN THE CPI NUMBERS ARE GONNA COME OUT WHEN EMPLOYMENT NUMBERS ARE GONNA COME OUT, AND WE WANT TO BE IN THE MARKET DURING A VERY STABLE WEEK, OR THAT WE CAN GET VERY STABLE PRICING.

UM, THIS ONE WAS OBVIOUSLY AFFECTED BY WHAT IS HAPPENING IN IRAN.

UM, SO WE WERE VERY, UH, LITTLE WORRIED OVER THE WEEKEND THAT, YOU KNOW, THERE WON'T BE ANY NEGATIVE NEWS, YOU KNOW, COMING, UH, ON A TUESDAYS WHEN WE PRICED.

SO LUCKILY FROM FRIDAY, WHEN WE DISCUSSED THE PRICING TO TUESDAY WHEN WE ACTUALLY PRICED, UH, GEOPOLITICALLY, IT WAS A STABLE ENVIRONMENT.

SO THE NEXT ISSUANCE THAT WE ARE LOOKING AT IS MAYBE LATE 2027 OR EARLY 2028.

SO WE WILL LOOK AT, WHAT WE TYPICALLY DO IS WE LOOK AT OTHER AIRPORT ISSUANCES THAT ARE GONNA COME AROUND THAT TIME AND WHAT THE SUPPLY IS GOING TO BE IN THE MARKET.

SO WE WILL WORK WITH OUR FINANCIAL ADVISORS AND THE, AT THAT TIME, AND I ALSO WANT TO JUST THANK OUR FINANCIAL ADVISORS, YOU KNOW, ON A, ON, ON A, ON A JOB WELL DONE, AND OUR UNDERWRITERS WHO ACTUALLY, YOU KNOW, SCHEDULED AND DID ALL THE SCHEDULING OF THE ROADSHOW, ET CETERA.

SO THIS WAS A VERY, YOU KNOW, TEAM EFFORT THAT, YOU KNOW, LED TO A VERY GOOD PRICING AND REALLY STRONG INVESTOR DEMAND.

BUT WE DISCUSS ALL THAT DURING THAT TIME, AND WE LOOK AT WHAT OTHER AIRPORTS ARE COMING INTO MARKET AND AT WHAT TIME.

SO WE LEARNED THAT FROM UNDERWRITERS WHEN THOSE ISSUANCES WILL COME OUT.

AND USUALLY THERE IS SOME EARLY NOTICE ON WHEN THOSE THINGS WILL HAPPEN, AND WE'LL GO TO MARKET WHEN WE THINK THAT.

AND WHEN THE ALSO BOND INFLOWS AND OUTFLOWS IS ANOTHER THING THAT WE LOOK AT.

SO WE LOOK AT MONTHS WHEN THERE IS GOOD BOND INFLOWS, UH, AND THEN THERE IS GOOD, YOU KNOW, THAT WILL LEAD TO BETTER DEMAND TOO.

SO ALL THOSE FACTORS WE KIND OF LOOK AT WHEN WE WANT TO TIME IT HOPEFULLY.

DOES THAT ANSWER? THANK YOU.

CONGRATULATIONS AGAIN.

WHAT ARE WE A DOUBLE A? YOU, YOU DID? NO, UH, YEAH, SO LET ME, YEAH, I DIDN'T ANSWER THAT, SORRY.

SO, WITH MOODY'S, WE ARE AN A ONE WITH S-P-S-M-P, WE ARE A PLUS.

AND KROLL, WE ARE DOUBLE A MINUS.

THANK YOU, MR. THOMAS.

ANY OTHER OTHER COMMENTS OR QUESTIONS? RAJEEV, I JUST WANTED TO TELL YOU, UH, CONGRATULATIONS.

THAT'S, THAT'S HUGE.

AND I KNOW THAT WAS A TON OF WORK.

SO REALLY, I MEAN, IS IT, WAS IT THE BIGGEST BOND ISSUANCE IN CITY HISTORY? YES, IT WAS.

YEAH.

AWESOME.

YEAH, A LOT OF EFFORT WENT INTO THAT.

SO CONGRATULATIONS TO EVERYONE INVOLVED.

OH, SERIOUSLY, WELL DONE.

ANY OTHER COMMENTS? THANK YOU.

WE KNOW IT'S A TEAM EFFORT, UH, MR. THOMAS AND A LOT OF PEOPLE ARE INVOLVED, BUT, UH, THAT'S WHAT IT TAKES TO GET THESE THINGS GOING, BUT IT'S VERY EXCITING TO SEE THAT MUCH BEING NOW TAKEN CARE OF ON OUR, UH, FOR OUR FUTURE NEEDS.

TO ITEM NUMBER, UH, UH, STAFF RE BRIEFING NUMBER FOUR ON PAGE 17, HIS BRIEFING OF BRIEFING OF PAGE 2000, UH, 2026 AIR FORCE AIR SERVICE UPDATE PROVIDED BY JAMIE KOFF AIR SERVICE, UH, DEVELOPMENT.

UH, WE'RE GONNA GO

[4. Briefing on May 2026 Air Service Updateprovided by Jamy Kazanoff, Air Service Development ]

WELL, WELCOME.

GOOD AFTERNOON.

WE'LL GET MONTREAL BACK AT THAT POINT.

SO THIS QUARTER WE HAVE 3.7 MORE SEATS.

THAT'S GOOD.

YEAR OVER YEAR, MAY ALONE, WE'RE UP 3% MORE SEATS.

WE HAVE HAD AN OVERALL TREND WHERE WE'RE SEEING OUR LARGER CARRIERS, ADDING SOME OF THEM AT RECORD BREAKING LEVELS, AND SOME OF OUR SMALLER CARRIERS ARE PULLING BACK A BIT.

UH, WE'LL TALK ABOUT SPIRIT IN A LITTLE BIT.

LET'S JUST START AT THE TOP WITH, UH, AIR CANADA.

MONTREAL WAS EXPECTED TO BE YEAR ROUND AND IT'S NOW GOING TO BE SEASONAL.

SO THAT WAS PULLED BACK AND THEY TOLD ME HIGH FUEL.

SO THAT WAS DEFINITELY AFFECTED BY THE OIL PRICES.

THE SUMMER, 27 SEASON'S NOT LOADED YET, BUT IT'S MY EXPECTATION THAT

[00:15:01]

ALLEGIANT, A-U-L-C-C CARRIER, A HEALTHY ULCC CARRIER, THEY'RE DOING WELL IN AUSTIN.

GLAD TO SEE THEIR SERVICE LOADED UP AMERICAN.

I'M PLEASED TO SAY THEY'RE UP JUST OVER A HALF A PERCENT IN SEATS YEAR OVER YEAR FOR JUNE, FOR MAY RATHER.

UH, BRITISH AIRWAYS, WE'VE GOT THE DOUBLE DAILY IT'S COMING IN, CAMAN STARTS MAY 24TH.

THAT'S A SEASONAL SERVICE THAT WE HOPE TO EXTEND IN THE FUTURE.

COPA IS AN EXAMPLE OF A CARRIER THAT DID PULL BACK A BIT.

THEY WERE PLANNING TO DO FIVE A WEEK, AND THEY ARE PUSHING BACK TO FOUR LATER MONTHS.

DELTA IS OUR SECOND LARGEST CARRIER.

THEY HAVE FIVE NEW ROUTES STARTING IN JUNE ALONE, AND A TERRIFIC SERVICE THAT WE'RE SEEING FROM DELTA AND CONTINUED GROWTH.

FRONTIER HAS EXTENDED ITS SCHEDULES.

JETBLUE TOOK ADVANTAGE, IF YOU WILL, OF, UH, SPIRITS EXIT.

AND, UH, THEY ADDED MORE FORT LAUDERDALE.

I HAVE WRITTEN HERE THAT IT'S NOT LOADED YET BY PRINT.

IT WASN'T, BUT IT IS NOW LOADED.

SO TO FORT LAUDERDALE ON JETBLUE, THEY'RE GOING FROM TWO TO THREE, AND OF COURSE, THEY'RE ADDING BOSTON NUMBER TWO NEXT MONTH IN JUNE.

SO IT'S GOOD TO SEE JETBLUE MOVING KLM THREE TIMES A WEEK, EXCEPT FOUR IN JUNE.

LU TANZA LOADED NOW, UH, FOR FIVE A WEEK.

PORTER, THE NEW CARRIER TO TORONTO, WILL BE CELEBRATING THAT IN INAUGURAL ON MAY 21ST, FIVE TIMES A WEEK.

UM, THEY SAY THAT THEIR SALES ARE LOOKING PRETTY GOOD, SO LET'S KEEP THE, THE WORD GOING OUT THERE FOR PORTER TO TORONTO.

AND THEY HAVE CONNECTIONS THROUGH THERE AS WELL, BOTH INTRA CANADA AND, UH, ON THEIR PARTNERS.

SOUTHWEST IS AT ITS RECORD LEVELS HERE, OUR LARGEST CARRIER.

THEY WILL BE STARTING TWO NEW ROUTES IN JUNE.

SPIRIT.

SAD TO SAY THAT WE DID LOSE SPIRIT SYSTEMICALLY.

WE ALL LOST THEM ON MAY 2ND.

JUST AFTER MIDNIGHT AND AUSTIN, THEY WERE FLYING TO NEWARK AND OF FORT LAUDERDALE.

WE HAVE OTHER CARRIERS FLYING TO THOSE MARKETS, SO WE DID NOT LOSE A MARKET, BUT WE HATE TO SEE A CARRIER GO.

UH, SPIRIT DID ACCOUNT FOR LESS THAN 1% OF OUR SEATS HERE, SO IT'S NOT A BIG IMPACT ON AUSTIN.

BUT, UM, WE HAVE A LOT TO OWE SPIRIT AND THESE CCS, YOU KNOW, WE WOULDN'T HAVE BASIC ECONOMY ON THE LARGE CARRIERS WITHOUT THESE SMALL GUYS.

KEEPING THE BIG GUYS, UH, UP TO DATE ON PRICING.

VEEVA, WE WANT THEM TO START NLU.

IT'S ON TEMPORARILY ON HOLD.

THERE WAS SOME NEWS TWO WEEKS AGO THAT THE MEXICAN GOVERNMENT AND THE US GOVERNMENT ARE TALKING AND SPECIFICALLY ABOUT, UM, RELIEF FOR THIS RESTRICTION.

SO I'M HEARING AS SOON AS TWO OR THREE MONTHS PERHAPS, WE COULD SEE SOME RELIEF AND SOME MOVEMENT THERE.

AND MY HOPE IS THAT VEEVA WOULD, UH, START, NLU WESTJET IS AN EXAMPLE OF A CURE THAT DID PULL BACK A BIT.

THEY WERE, WERE GONNA GO THREE TIMES A WEEK.

THEY'RE NOW DOING TWO TIMES A WEEK, AND THEY'RE EXITING CALGARY A LITTLE BIT EARLIER THAN TYPICAL.

INSTEAD OF OCTOBER 22, THEY'LL BE OUT SEPTEMBER 10TH.

THEY NEED THESE JETS FOR MORE LUCRATIVE ROUTES THAT THEY ARE SEEING WITH CANADIAN DEMAND.

UH, OVERALL, WE'RE UP THREE DESTINATIONS AND LOTS OF NEW NONSTOP SERVICE THERE.

I MENTIONED WHAT'S HAPPENING IN JUNE, AND THE TWO NEW CARRIERS ARE NONSTOP, DEPARTURES UP 3%.

OUR SEATS ARE UP THREE TO 4%.

SO THAT'S THE CRUX OF THE, UH, AIR SERVICE, UH, THEME.

I CAN'T PREDICT THE FUTURE, BUT WE KNOW THERE'S GONNA BE CHANGES.

UH, WE'RE STILL IN A GOOD POSITION IN AUSTIN, TEXAS TO WEATHER THESE, PARTICULARLY SINCE WE HAVE THE LARGE CARRIERS, SO GREATLY FOCUSED ON AUSTIN.

OKAY, THANK YOU, MS. CA KOFF.

UH, OPEN IT FOR ANY COMMENTS OR QUESTIONS.

OH, I'M SORRY.

UH, UH, MS. OH, JONATHAN, CUT OFF.

YOU'RE RIGHT, THEY'RE AT THE BACK OF THIS REPORT, BUT YOU HAVE TO SCROLL TO THE BACK TO SEE THEM.

UM, I JUST, MAYBE I'M THE ONLY ONE THAT DOESN'T KNOW THE AIRPORT CODES.

JUST DID WE, WHEN WE'RE DOING THESE SUMMARIES, JUST LIKE MAYBE IN PARENTHESES HAVE THE CITY NAME, AND THEN IN PARENTHESES THE AIRPORT CODE.

I'M GONNA ADMIT, MAYBE OTHER PEOPLE KNOW, LIKE X AND A IS ARKANSAS, AND YES, CANADIAN AIRPORT STARTS WITH A Y BUT IT, IT DOES MAKE IT HARDER TO FOLLOW.

[00:20:01]

YEAH, IT SORT OF FLIPS BACK AND FORTH.

AND LIKE THESE DAYS I CAN RUN IT THROUGH CLOUD OR GEMINI OR SOMETHING, HAVE IT DO IT, BUT IT MIGHT BE EASIER.

DON'T FEEL BAD.

I HAVE, HAVE TO LOOK 'EM YEAH.

TO FOLLOW MIGHT BE A LITTLE EASIER, ESPECIALLY WITH NEW ONES.

WE'VE GOT ALL THESE NEW CODES, WHICH IS GREAT.

I CAN IMPROVE THAT ON THE REPORT.

COOL.

THANKS.

THANK YOU, MR. UH, MR. MR. CHU? NO, NO, PLEASE.

I THINK SOMEBODY ELSE IS.

NO, UH, PLEASE GO.

OH, UH, UH, MS. KANO, JUST ONE QUESTION DURING MAY.

UH, ANYTHING YOU CARE TO SHARE AROUND THE, UH, CHANGE OF PIPELINE OR ANYTHING ASSOCIATED WITH INTERNATIONAL ROUTE DEVELOPMENT? YOU KNOW, I'M, THAT'S ONE OF MY KEEN INTERESTS.

NO, I DON'T HAVE ANYTHING TO REPORT THAT'S BEEN REPORTED PUBLICLY.

WE CONTINUE TO TALK TO THE AIRLINES FEROCIOUSLY ABOUT ADDING THE SERVICE.

THEY'RE AWARE OF OUR BUSINESS CASES.

ANY OTHER FINAL QUESTION? MR. BROCK? REALLY APPRECIATE THE UPDATE.

YOU HAD MENTIONED THAT THE, I THINK ONE OF THE MONTREAL FLIGHTS WAS CANCELED DUE TO, UH, FUEL PRICES.

CAN YOU HELP ME OR US UNDERSTAND HOW FUEL PRICES FACTOR INTO THE DECISIONING ON ROUTES? YES.

SO THINK ABOUT FOUR MAJOR COSTS THAT AIRLINES HAVE.

THEY HAVE FUEL, THEY HAVE THE COST TO THE AIRCRAFT, THEY HAVE THE CREW AND ALL THE PERSONNEL, THE THOUSANDS OF EMPLOYEES.

AND THEN THEY HAVE THE AIRPORT RENT, WHICH IS A SMALL PERCENTAGE OF IT.

TYPICALLY LESS THAN FIVE OR 10% OF THEIR OVERALL FUEL IS UP THERE.

IT'S, UH, RIGHT NOW PROBABLY NUMBER ONE FOR THESE CARRIERS.

AND THEY'RE OPERATING ON THE MARGINS.

YOU KNOW, THIS IS, UH, THEY CAN ADD TWO MORE SEATS OF REVENUE AND THAT MAY MAKE THAT ROUTE WORK OR NOT WORK.

UM, SO FUEL IS A BIG ISSUE, AND THEY LOOK AT WHERE THEY CAN FLY, WHERE THEY MAY USE LESS FUEL AND WHERE THEY CAN HAVE HIGHER DEMAND.

SO THAT'S HOW IT CAN AFFECT AUSTIN.

PAGE 24 OF OUR AGENDA BRIEFING ON 2025 AIR CARGO MARKET ANALYSIS PRESENTED BY JAMIE KOFF, AIR AIR SERVICE DEVELOPMENT, UH, ROHAN SHEATH RESEARCH MANAGER, CAMPBELL HILL AND RICK EDWARDS, SENIOR ADVISOR AT CAM CAMPBELL HILL.

THAT'S HELPFUL.

HEY, MS. BROCK, ANY OTHER FINAL COMMENTS, QUESTIONS? OKAY, IF NOT, WE'LL MOVE ON TO ITEM, UH, NUMBER, UH, FIVE ON

[5. Briefing on 2025 Air Cargo Market Analysis presented by Jamy Kazanoff, Air Service Development; Rohan Sheth, Research Manager, Campbell-Hill; and Rex Edwards, Senior Advisor, Campbell-Hill ]

WELCOME.

WELL, THANK YOU.

LET ME DO A BRIEF, UH, INTRODUCTION BEFORE WE HAVE OUR, OUR TEAM SPEAK ABOUT IT.

EVERY THREE TO FIVE YEARS, WE DO AN AIR CARGO SNAPSHOT.

WE GO INTERVIEW MANUFACTURERS LOCALLY.

WE INTERVIEW OUR TENANTS, WE LOOK AT OUR CARGO VOLUME.

WE'RE LOOKING AT TRENDS FOR AUSTIN.

AIR CARGO ACCOUNTS FOR LESS THAN 5% OF OUR TOTAL REVENUE.

IT'S NOT A HUGE PIECE, BUT IT'S AN IMPORTANT PIECE.

AND WE'LL LEARN TODAY HOW AIR CARGO WORKS.

THERE'S BELLY FREIGHT, WHICH IS THE FREIGHT THAT'S INSIDE THE JETS THAT ARE FLYING PASSENGERS.

THERE'S INTEGRATORS SUCH AS FEDEX, UPS AND AMAZON.

THERE'S CHARTERS.

SO I WANTED TO, UM, CHAT A LITTLE BIT ABOUT AIR CARGO AND UPDATE IT IN A WAY.

ALSO, I WANNA REMIND EVERYONE THAT AUSTIN IS 20, 30, 35 YEARS BEHIND DALLAS AND HOUSTON ON AIR CARGO.

THOSE ARE DIFFERENT BIRDS WITH AIR CARGO, WITH HUGE AIR CARGO FACILITIES.

WE HAVE FACILITIES HERE.

AND AS OUR DEMAND GETS STRONGER, WE CAN MEET MORE OF THE DEMAND AS THE MANUFACTURERS KNOCK ON THE DOOR AND ASK US TO BUILD MORE FOR THEM.

ANOTHER THING TO THINK ABOUT WITH AIR CARGO IS FOR THE MOST PART, MANUFACTURERS HAVE A MIDDLEMAN, AND IT'S CALLED A, A FREIGHT FORWARDER.

THE FREIGHT FORWARDERS ARE DECIDING WHERE TO SHIP THE CARGO.

ARE THEY GONNA TRUCK IT TO MIAMI? ARE THEY GONNA TRUCK IT TO LA? ARE THEY GONNA TRUCK IT TO DALLAS? ARE THEY GONNA FLY IT FROM AUSTIN? THESE FREIGHT FORWARDERS ARE, FOR THE MOST PART, MAKING THESE DECISIONS ON BEHALF OF THE MANUFACTURERS HERE.

WHEN WE LAST DID THE STUDY, THE SINGLE GREATEST THING WE HEARD FROM THE STUDY WAS, WE NEED A FREIGHT FORWARDER HERE IN AUSTIN, WORKING AUSTIN.

SO WE WORKED ON THAT AND WE SUCCESSFULLY LANDED DHL GLOBAL FORWARDING.

SO WE DID HAVE THAT SUCCESS THANKS TO THIS STUDY.

SO ROHAN, UM, WHY DON'T YOU GO AHEAD AND GET STARTED.

CAMPBELL HILL, YOU GUYS ARE FAMILIAR WITH, THEY PROVIDED THE DOMESTIC OVERVIEW FOR US AND THE INTERNATIONAL OVERVIEW FOR US.

AND NOW

[00:25:01]

WE'LL JUST DO A, A LITTLE BIT OF A DEEPER DIVE INTO AIR CARGO.

SOUNDS GREAT.

THANK YOU, JAMIE, AND HOPE EVERYBODY CAN HEAR ME.

UH, YEAH, LIKE, UH, JAMIE MENTIONED, I'M BROHAN SCH.

I'M A RESEARCH MANAGER FOR CAMPBELL HILL.

UM, I'M JOINED HERE, UH, ON THE CALL, UH, WITH REX EDWARDS.

UH, I DID WANT TO GIVE HIM AN OPPORTUNITY TO INTRODUCE HIMSELF TO THE GROUP AS HE COULD BE CONSIDERED THE BRAINS AND THE, UH, THE REALLY SUBJECT MATTER EXPERT WHEN IT COMES TO AIR CARGO IN THE INDUSTRY.

SO, UH, REX, WOULD YOU BE ABLE TO GIVE A BRIEF INTRO? YEAH, CAN YOU HEAR ME THEN? YES.

YES, MA'AM.

OKAY, GREAT.

UH, YEAH, I'VE BEEN DOING FREIGHT TRANSPORTATION ANALYSIS SINCE THE SEVENTIES, UH, DID THE TWO PREVIOUS STUDIES FOR AUSTIN.

SO MAINLY INTERESTED IN UNDERSTANDING WHAT THE DYNAMICS IN TERMS OF SUPPLY AND DEMAND ARE, AND SEE WHERE AUSTIN CAN POSITION ITSELF TO TAKE ADVANTAGE OF ADVANTAGES AND MITIGATE DISADVANTAGES.

GREAT.

WELL, YEAH, THANK YOU REX.

UM, YEAH, SO WE'LL GET STARTED HERE.

SO WHAT WE'RE GONNA COVER, UH, WITH THIS STUDY, UH, WE TOOK A REALLY DEEP DIVE INTO THE AIR CARGO ACTIVITY THAT'S OCCURRING AT AUSTIN.

UM, IN TERMS OF THE CARRIERS THAT ARE OPERATING THERE, HOW AUSTIN IS POSITIONED IN THE, UH, NATIONWIDE AIR CARGO INDUSTRY, UH, COMPARED TO SOME OF THE PEERS, UH, YOU KNOW, NATIONWIDE.

ADDITIONALLY, UH, WE'LL ALSO LOOK AT THE AIR TRADE, UH, THAT'S CURRENTLY, UM, HAPPENING OR CURRENTLY BEING RECORDED IN AND AROUND AUSTIN.

UH, SO, UH, THE ACTIVITY AND THE COMMODITIES THAT WOULD, UH, BE TRAVELING VIA AIR FREIGHT, UM, THAT MAY OR MAY NOT BE, UH, HANDLED BY AUSTIN.

UM, SO JUST DOING THAT IN-DEPTH MARKET ANALYSIS FOR THE AUSTIN ERIC GRADE.

UH, AND THEN, UH, ALSO PROVIDED SOME OPPORTUNITIES OF RECOMMENDATIONS MOVING FORWARD FOR, UM, YOU KNOW, GIVEN THE OUTCOMES AND THE, UH, YOU KNOW, THE FINDINGS OF THE STUDY, HOW CAN WE BEST PROCEED FORWARD? UM, YOU KNOW, TRYING TO HANDLE THE AIR CARGO DEMAND AND GROWTH THAT'S BEEN OCCURRING, UH, IN AND AROUND AUSTIN, UH, AS IT RELATES TO SOME OF OUR PEERS IN THE STATE AS WELL.

SO STARTING WITH, UH, WHERE AUSTIN IS CURRENTLY RANKED, SO CURRENTLY AUSTIN IS RANKED 34TH WHEN IT COMES TO AIR TRADE AND, AND AIR CARGO.

UM, WHICH, UH, AT, ON ITS SURFACE DEFINITELY FEELS LIKE THAT'S A BIT LOW ON THE LIST.

UM, BUT ACTUALLY, UM, THE WAY THAT THE AIR CARGO INDUSTRY SORT OF WORKS, IT'S, IT'S SIMILAR TO, UH, THE PASSENGER AIR SERVICE SIDE THAT, UM, JAMIE WAS GIVEN A BRIEFING ON, UH, WHERE THERE ARE, UH, VARIOUS HUBS AND GATEWAYS, UH, THROUGHOUT THE US, UH, THAT HANDLE THE MAJORITY OF THE AIR CARGO.

UH, SO THOSE CAN INCLUDE INTEGRATOR HUBS LIKE MEMPHIS, ANCHORAGE, UH, LOUISVILLE, INDIANAPOLIS.

THOSE ARE MAJOR INTEGRATOR, UH, HUBS FOR INTEGRATOR CARRIERS, THOSE BEING FEDEX, UPS, AMAZON, THOSE SORT OF CARRIERS.

UH, AND, AND THEY'RE HANDLING THE LARGE, UH, SHARE OF AIR CARGO SO THAT IF YOU'RE LOOKING AT THAT TABLE ON THE LEFT HAND SIDE, YOU'LL SEE A LOT OF THOSE AIRPORTS.

UM, IN THAT TOP 10.

ADDITIONALLY, THERE'S ALSO, UH, INTERNATIONAL GATEWAY.

SO THESE ARE THE AIRPORTS, BUT BASED ON THEIR GEOGRAPHIC PROXIMITY AND JUST THE, THE RESOURCES AND THE INFRASTRUCTURE THEY HAVE AT THE AIRPORT, UH, THEY ARE WELL POSITIONED TO HANDLE, UH, AIR FREIGHT INTERNATIONALLY TO DIFFERENT GLOBAL REGIONS.

SO, FOR EXAMPLE, WITH MIAMI, THEY ARE A BIG, UH, GLOBAL, UH, HUB FOR LATIN AMERICAN, UH, PASSENGER AND AIR FREIGHT.

UH, SO THAT REALLY MAKES UP THE TOP 10 THAT YOU'RE SEEING THERE IN THAT LIST.

ON THE LEFT, UH, YOU CAN SEE DALLAS-FORT WORTH IS THERE RANKED 11TH.

HOUSTON'S RANKED 17TH, AND THEN THERE WE ARE ON AUSTIN RANKED 34TH.

UM, AUSTIN, NOTABLY HAS BEEN GROWING A LITTLE BIT, UM, MORE, UH, IN, IN THE PAST YEAR, UH, IN TERMS OF AIR CARGO.

UM, AND GIVEN AUSTIN'S UNIQUE, UH, NATURE TO HAVE INTERNATIONAL, UH, NONSTOP SERVICE TO, TO EUROPE VERSUS SOME OTHER, UH, MEDIUM HUB AIRPORTS, UM, THAT I THINK IT, ALONG WITH OTHER FACTORS THAT I'LL COVER HERE, UH, REALLY POSITION AUSTIN AS A, A, A GREAT AIRPORT TO BE ABLE TO HANDLE ADDITIONAL INTERNATIONAL CARGO AND BE A, A MORE REGIONAL HUB, UH, FOR, FOR AIR CARGO AS COMPARED TO SAN ANTONIO AND OTHERS.

THE FINAL NOTE I'LL MAKE, UM, LIKE I MENTIONED AUSTIN RANKED 34TH, UM, THAT'S ACTUALLY COMPARABLE IN, UH, AIR TRADE VOLUMES TO, UH, DETROIT, SALT LAKE CITY, UH, SAN DIEGO AND LAS VEGAS.

I MENTIONED THOSE BECAUSE THEY'RE TYPICALLY CONSIDERED AIRPORTS THAT

[00:30:01]

HANDLE OR HAVE MORE AMOUNTS, UH, OR GREATER PASSENGER AIR SERVICE VERSUS AUSTIN, BUT ACTUALLY HAVE VERY SIMILAR AIR CARGO VOLUMES, SO IT'S NOT AIR CARGO VOLUME.

UM, AND, AND THAT ACTIVITY IS NOT NECESSARILY INDICATIVE OF A PASSENGER AIR VOLUMES.

THEY'RE TWO, UM, YEAH, SORT OF SEPARATE SIDES OF THE BUSINESS.

UM, AND IT COULD BE KIND OF TREATED AS SUCH.

SO LOOKING AT HOW AIR CARGO HAS TRENDED FOR AUSTIN, UH, VERY SIMILAR TO OTHER AIRPORTS NATIONWIDE, AUSTIN'S AIR CARGO GREW SIGNIFICANTLY, UH, AT THE ONSET OF THE PANDEMIC, UM, AND THEN HAS LARGELY STABILIZED IN THE LAST FEW YEARS.

UM, THE BIGGEST INDUSTRY EVENTS TO THAT HAVE HAPPENED RECENTLY.

UM, SOME THAT DID HAVE AN IMPACT ON AUSTIN, UH, IS THAT FEDEX, UH, HISTORICALLY HAS HANDLED THE USPS, UH, POSTAL MAIL CONTRACT THAT HAS ACTUALLY SWITCHED OVER TO UPS IN LATE 2024, UM, AS FEDEX HAS TRIED TO FOCUS ON THE HANDLING OR HIGH YIELD GOODS.

UH, AND THAT HAS ACTUALLY RESULTED IN A DECLINE IN AIR CARGO TRAFFIC ACROSS MANY US SERVICE AIRPORTS, INCLUDING AUSTIN, UM, AS THEY'RE TRYING TO FOCUS, UM, MORE ON, UM, YOU KNOW, YIELD OVER TRAFFIC GROWTH.

UM, ADDITIONALLY, UH, AMAZON AIR HAS BEEN CONCENTRATING MORE OF THEIR AIR CARGO ON THEIR REGIONAL HUBS AND SERVICING MORE AIRPORTS, UH, BY TRUCKING THAN, UH, FEWER DIRECT FLIGHTS.

SO THAT'S ANOTHER NOTABLE INDUSTRY TREND THAT'S HAPPENED, BUT NOT AS MUCH OF AN IMPACT THERE AS THE, UH, FEDEX, UH, A SHIFT IN THEIR, UH, NATIONWIDE STRATEGY ON AIR CARGO.

BUT THAT'S HAPPENED AT AUSTIN.

UH, SO ALL OF THIS AIR CARGO ACTIVITY WOULD, WOULD NOT BE POSSIBLE, UM, AND, UH, ARE HANDLED BY VARIOUS CARGO AIRLINES.

SO, LIKE I MENTIONED EARLIER, UH, THE INTEGRATOR CARRIERS BEING FEDEX, UPS, AMAZON, UM, THE WAY THAT THEY OPERATE IS, UM, SERVICING, UH, REGIONS ON A MORE LOCALIZED LEVEL.

SO THEY'RE SERVICING AUSTIN DIFFERENT FROM SAN ANTONIO, DALLAS, AND HOUSTON, WHICH ARE, ARE HANDLED MORE SEPARATELY.

UM, THIS IS A BIT DIFFERENT FROM THE INTERNATIONAL SIDE.

UH, INTERNATIONAL COULD BE BASED ON THE AMOUNT OF INTERNATIONAL NONSTOP CONNECTIVITY.

UH, AND ACTUALLY LATER ON I'LL SHOW YOU HOW AUSTIN, GIVEN ITS, UH, YOU KNOW, UNIQUE INTERNATIONAL SERVICE COMPARED TO OTHER MEDIUM HUB PEERS, UM, IS ABLE TO POSSIBLY PULL MORE BY AIR TRADE, UH, FROM A LARGER AREA BESIDES JUST THE IMMEDIATE AREA, UM, DOMESTIC PASSENGER FLIGHTS HANDLED POINT TO POINT TRAFFIC, EUROPEAN PASSENGER FLIGHTS.

UM, IT'S A PART OF THE STUDY WE DID, UM, INTERVIEW AND REACH OUT TO VARIOUS STAKEHOLDERS IN AND AROUND THE COMMUNITY AND, UM, ALSO ON, ON AIRPORT GROUND HANDLERS, UM, AND, AND FOLKS THAT ARE HANDLING THE AIR CARGO, UM, AT AUSTIN.

AND WHAT WE HEARD IS THAT, UH, THERE MIGHT BE A, A LIMITATION OR, OR SOME STRAIN IN HANDLING SOME OF THE CAPACITY, UH, ON THE EUROPEAN PASSENGER FLIGHTS.

UM, SO THEN ON THE SUPPORTING SERVICES, AND SO, UH, LIKE JAMIE MENTIONED, THERE ARE, UH, ON AIR, ON AIRPORT CARGO BUILDINGS, UM, INCLUDING A NEW EAST CARGO BUILDING THAT WAS CONSTRUCTED, UH, RECENTLY, UM, AND IS OPEN NOW.

UH, SO THAT, YOU KNOW, GOES TO SHOW HOW THE AIRPORT IS CONTINUOUSLY IMPROVING AND, AND, YOU KNOW, BUILDING ADDITIONAL CAPACITY FOR, FOR GROWING AIR CARGO.

UM, ADDITIONALLY ON AIRPORT GROUND HANDLERS, CUSTOM BROKERS, FREIGHT FORWARDERS, THOSE ARE THE, UM, COMPANIES THAT HANDLE THE AIR CARGO, UM, AS SOON AS IT GETS OFF THE AIRPORT.

UH, SO TAKING THAT CARGO AND TRANSPORTING IT TO WHERE IT ULTIMATELY NEEDS TO GO ONCE IT GETS OUT INSIDE THE AIR AIRPORT ENVIRONMENT, AND THEN GENERAL TRUCK AND WAREHOUSING ALL VERY KEY COMPONENTS WHEN IT COMES TO AIR CARGO ACTIVITY.

SO THAT REALLY DESCRIBES WHAT'S HAPPENING AT AUSTIN CURRENTLY.

UM, ANOTHER BIG COMPONENT OF THIS STUDY IS THAT WE MEASURED THE AIR TRADE THAT IS HAPPENING, UM, IN AND AROUND AUSTIN.

UM, AND SO, UM, LIKE I MENTIONED ON DOMESTIC, THAT'S MORE HANDLED, UH, ON A LOCALIZED LEVEL.

SO THE MAP ON THE LEFT THERE SHOWS THE DOMESTIC, YOU COULD CALL IT CATCHMENT OR SERVICE REGION THAT WE DEFINE FOR THE STUDY.

THAT'S GONNA BE A SMALLER REGION THAN THE INTERNATIONAL, UM, WHICH IS INTENTIONALLY LARGER AND ENCOMPASSES SAN ANTONIO AND SOUTH TEXAS,

[00:35:01]

GIVEN THAT AUSTIN IS, HAS, HAS THE INTERNATIONAL BELLY FREIGHT CAPACITY ON THE EUROPEAN PASSENGER FLIGHTS, BUT TO BE, TO BE ABLE AND CURRENTLY HANDLING, UM, EUROPEAN AIR CARGO.

UM, AND ONCE THAT'S ROOTED TO THOSE EUROPEAN HUBS, THEY'RE ABLE TO BE, UM, OFFLOADED AND TRANSFERRED, UH, TO ADDITIONAL FLIGHTS TO BE ABLE TO GO TO OTHER GLOBAL REGIONS.

SO THAT, THAT'S A VERY UNIQUE, UM, YOU KNOW, ATTRIBUTE OF AUSTIN, UH, THAT ALLOWS THE AIRPORT AND ALLOWS THE REGION TO BE ABLE TO PULL, UH, FROM A MARCH RATER, UH, FOOTPRINT.

SO LOOKING AT THE AIR TRADE, UH, IT HAS LARGELY BEEN GROWING.

SO SINCE 2019, TOTAL TRADE WEIGHT GROWN, 53%, UH, AND ALMOST 20% IN THE LAST YEAR AT A LARGE, UH, REASON FOR THAT IS THE GROWTH OF HIGH TECH MANUFACTURING AND SEMICONDUCTOR, UH, MANUFACTURING THAT WAS, UM, IDENTIFIED AS A TOP COMMODITY, UM, THAT'S BEEN GROWING, UM, AS I'M SURE A LOT OF US KNOW CONSIDERABLY IN, IN AUSTIN AND IN THE, THE COMMUNITY.

AND WE'RE CERTAINLY SEEING THAT IN THE DATA HERE.

AND, AND THAT'S CONTRIBUTED TO A, A LARGE AMOUNT OF AIR TRADE WEIGHT HERE.

UM, SO THAT'S THE TOTAL AMOUNT OF AIR TRADE WEIGHT IN THAT INTERNATIONAL SERVICE REGION.

A LOT OF THAT IS ACTUALLY NOT HANDLED AT AUSTIN.

A LOT OF THAT IS, UM, ACTUALLY ENDED UP BEING TRUCKED UP TO TEXAS BY THE OR TO DALLAS OR TO HOUSTON OR TO OTHER AIRPORTS.

UM, SO THAT THIRD BULLET THERE IS SHARING THAT LIKE ONLY ABOUT ONE TO 2% OF THE AIR TRADE IS ROOTED TO THOSE OTHER TEXAS AIRPORTS.

UM, AND, UH, ACTUALLY WHEN YOU CONSIDER THAT INTERNATIONAL MARKET REGION AND THE DI DEMOGRAPHICS THAT IT REPRESENTS, IT'S FAIRLY COMPARABLE TO DALLAS AS A METRO AREA AND HOUSTON, UM, AS A METRO AREA, UH, GIVEN THAT IT, YOU KNOW, THAT INTERNATIONAL REGION IS A COMPANY'S ENCOMPASSING, UH, SAN ANTONIO.

SO, UM, THIS IS A REALLY BIG CASE WHERE OFTEN DESPITE, YOU KNOW, HOW MUCH IT'S ABLE TO DRAW FROM, UH, YOU KNOW, IT'S, IT'S NOT CAPTURING THE AMOUNT OF AIT TRADE, UM, THAT IS KIND OF COMMENSURATE WITH, UH, THE LEVELS OF, OF DALLAS AND HOUSTON, DESPITE HAVING SIMILAR DEMOGRAPHIC PROFILES TO EACH OTHER.

UM, A LARGE PART OF THAT IS, UH, BECAUSE, YOU KNOW, DALLAS AND HOUSTON OBVIOUSLY HAVE A LOT MORE AIR SERVICE, A LOT MORE BELLY FREIGHT CAPACITY.

THEY HAVE ALL FREIGHTER, FREIGHTER, UH, AIRLINES THERE.

A LOT OF THE FREIGHT FORWARDERS, UM, HAVE ESTABLISHED OPERATIONS AT THOSE AIRPORTS AND TEND TO, UM, TRUCK TO, YOU KNOW, WHAT THEY CONSIDER SMALLER MARKETS AND, AND NOT NECESSARILY SUPPORTING THOSE SMALLER MARKETS WITH, UM, STOP FLIGHTS.

SO THAT'S A LARGE PART WHY DALLAS AND HOUSTON ARE LARGER IN TERMS OF AIR CARGO.

UM, AND THEN, YEAH, TALKING ABOUT LEAKAGE OR JUST THE, THE AMOUNT OF AIR TRADE THAT ISN'T HANDLED AT AUSTIN AND GOING TO OTHER AIRPORTS, UM, THE CHART ON THE RIGHT SHOWS WHAT THE PERCENTAGES ARE BY REGION.

UM, THE LA LATAM REPRESENTS LATIN AMERICA.

THAT'S A LITTLE BIT HIGHER BECAUSE A LOT OF, UH, AIR GRADE WEIGHT, UH, IS ACTUALLY BEING TRUCKED TO, UM, NOT JUST HOUSTON, BUT ALSO AS FAR AS MIAMI, UH, GIVEN HOW MUCH, UH, INTERNATIONAL CAPACITY AND HOW MUCH INTERNATIONAL ACTIVITY THEY'RE ALREADY HANDLED TO LATIN AMERICA BEING SUCH A GLOBAL CLUB.

UM, SO IT'S NOT NECESSARILY IN INTRA TEXAS, BUT IT'S ALSO GOING ACROSS STATE LINES AS WELL.

UH, SO WITH ALL OF THIS DATA ANALYSIS WORK, WE ALSO COMPLETED AN OUTREACH EFFORT TO DIFFERENT COMMUNITY STAKEHOLDERS, UM, ON AIR GROUND HANDLERS.

AND, AND LARGELY WHAT WE HEARD IS THAT, YOU KNOW, THE, THE COMMUNITY, YOU KNOW, LARGELY RECOGNIZES AUSTIN AS A, A LARGE AND GROWING CENTER FOR COMMODITIES, SEMICONDUCTORS, HIGH TECH MANUFACTURING, GROWING SO MUCH.

UM, BUT, BUT FREIGHT FORWARDERS TEND TO WANT TO CONCENTRATE THEIR CARGO AT THOSE LIMITED NUMBER OF GATEWAYS, LIKE I WAS MENTIONING, UH, WITH DALLAS AND HOUSTON AND SERVING, UH, AUSTIN VIA TRUCKING.

UM, THAT THAT WAS SOMETHING, UH, PRETTY NOTABLE THAT WE HEARD.

UM, ADDITIONALLY, UM, THERE WAS ALSO THE EXPRESS NEED, UH, TO BE ABLE TO DEVELOP ADDITIONAL CONTACTS AND, AND MORE COORDINATION WITH LOCAL, LOCAL STAKE STAKEHOLDERS, BUSINESS PARTNERS, UM, WHO TRY AND ENCOURAGE, UH, OR SUPPORT THE STORY AND THE CASE FOR MORE DIRECT

[00:40:01]

CARGO FLIGHTS.

AND THAT COULD POTENTIALLY BE, YOU KNOW, PASSENGER OR FREIGHTER CARGO FLIGHTS TO ASIA, GIVEN HOW MUCH HIGH TECH AND SEMICONDUCTOR MANUFACTURING IS GOING ON THERE.

AND THE SYNERGIES, UH, AND BUSINESS ACTIVITY THERE, UH, OPPORTUNITIES, UH, FOR CARGO EXPANSION IN GENERAL WITH THAT NEW CARGO BILLING, AND AGAIN, ASSIGNED THAT THE AIRPORT IS, UM, INVESTING AND GROWING THE CAPACITY, YOU KNOW, MAKING SURE THAT THOSE ARE CONTINUING TO OPERATE AS EFFICIENTLY AS POSSIBLE.

UM, AS, UM, YOU KNOW, THERE IS THE GROWING NEED FOR AND DEMAND FOR AIR CARGO, UM, AS THE CHARTS BEFORE REPRESENTED, UM, ON THE INTERNATIONAL END, UM, YOU KNOW, MAKING SURE THAT THERE IS CONTINUED BUILD OF DIRECT CARGO CAPACITY.

UM, ALSO, YOU KNOW, YOU KNOW, KIND OF TAKING THIS, UM, SORT OF MARKETING APPROACH OR WHERE YOU CAN START BY CHASING AFTER CHARTER ACTIVITY THAT COULD END UP LEADING TO BELLY FREIGHT ACTIVITY AND THEN POTENTIALLY TO A FREIGHTER.

SO, UM, IT'S NOT NECESSARILY GOING AFTER, UM, YOU KNOW, THE FREIGHTER ACTIVITY, BUT POSSIBLY STARTING WITH, UM, YOU KNOW, MORE LIMITED CHARTER OPERATIONS IS SOMETHING TO PURSUE.

UM, AND THEN DOMESTICALLY, UM, THE MARKET, WE CONSIDER IT'S VERY SERVED, VERY WELL SERVED, UM, BY THE INTEGRATOR CARRIERS.

UH, SOME RECOMMENDATIONS.

SO IN, IN GENERAL, UH, WE BELIEVE THAT THERE SHOULD BE MORE ONGOING COORDINATION, UH, OR POINTS OF CONTACT WITH, UM, KEY CARGO STAKEHOLDERS, UH, WITHIN THE COMMUNITY.

UM, THERE SHOULD ALSO, UM, KNOW, CONTINUE TO BE, UM, YOU KNOW, MORE EFFORTS TO TRY TO, UH, CAPTURE OR CHASE AFTER, UM, DIRECT NONSTOP, UH, FLIGHTS TO ASIA AS THAT WOULD SUPPORT THE RISE IN, UH, AIR CARGO.

UM, THAT'S DRIVEN A LOT BY THE HIGH TECH MANUFACTURING, LIKE I WAS MENTIONING BEFORE.

SO THAT'S KIND OF WHEN, WHERE, YOU KNOW, THE PURSUIT FOR MORE AGES SERVICE IS GOING TO SUPPORT THE, YOU KNOW, THE ABILITY OF THE AIRPORT TO HANDLE AIR CARGO.

UM, AND THEN, YEAH, JUST IN GENERAL HANDLE ANY CONCERNS THAT COME UP, UH, FROM EXISTING TENANTS.

UM, WE DID HEAR A LITTLE BIT OF CONCERN ABOUT HANDLING EUROPEAN AIR CARGO, SO BEING, TRYING TO HANDLE THOSE AND ADDRESS THOSE AS BEST AS POSSIBLE, UH, GIVEN THE INFRASTRUCTURE.

UH, AND THEN THE, THIS IS A LIST OF ACTION ITEMS THAT WE HAD, UH, AS A PART OF THE STUDY.

SO A LOT OF THIS IS JUST, YOU KNOW, CONTINUOUSLY ENGAGING WITH THE INDUSTRY, WITH THE COMMUNITY, UM, AND JUST HAVING THAT ONGOING, YOU KNOW, OUTREACH AND COORDINATION AND, AND ALSO JUST LIKE WE'RE DOING TODAY, UH, YOU KNOW, SPREADING THE WORD ABOUT, YOU KNOW, WHAT WE'RE DOING AS WHAT WE DID AS PART OF THE STUDY.

WHAT, AND JUST EDUCATING EVERYBODY ABOUT AIR CARGO, UH, AS A BUSINESS.

UM, THAT IS ALL WE HAD.

UM, WE'RE HAPPY TO TAKE QUESTIONS.

UM, AND THANKS FOR LISTEN FOR ANY FEEDBACK.

THANK YOU FOR YOUR PRESENTATION.

WE'LL OPEN UP FOR COMMENTS OR QUESTIONS.

JUST ONE QUESTION.

UH, YES, MR. CHU, THANK YOU.

THANK YOU FOR THAT REPORT.

UH, DID YOU DO ANY MODELING OR QUANTIFICATION OF, UH, IF THERE WAS AN INTERNATIONAL ROUTE, UH, SPECIFICALLY, YOU KNOW, WHICH COUNTRY OR WHICH COUNTRIES, YOU MENTIONED ASIA, WHICH COUNTRIES MIGHT BE, UH, THE ONES WHICH COULD BENEFIT, UH, COULD THE AUSTIN POPULATION COULD BENEFIT THE MOST FROM ECONOMY, YOU KNOW, THAT, THAT THE CARGO COULD GO UP A CERTAIN AMOUNT OR THAT, UH, YOU KNOW, 'CAUSE ALL THAT CREATES JOBS AND, AND FLOWS AND ALSO, UH, YEAH, ANYTHING LIKE THAT, MORE QUANTIFICATION FOR, FOR PEOPLE TO KNOW BOTH AUSTIN PEOPLE AND INDEED, YOU KNOW, WHICHEVER COUNTRIES THOSE ARE, YOU KNOW, FOR THEM TO, BECAUSE IT'S A TWO-WAY STREET TO LOBBY A, UH, A CARRIER, YOU KNOW, FROM ONE OF THE COUNTRIES TO BE ABLE TO SHOW, OH, YOU KNOW, THIS IS WHAT YOU CAN SAVE INSTEAD OF GOING TO HOUSTON OR DALLAS.

YEAH.

SO I, I COULD STILL ANSWER THAT, OR REX, DO YOU WANT TO GET THAT? NO, GO AHEAD.

GO AHEAD.

UM, IDENTIFY THE AIR CARGO GOING TO VARIOUS COUNTRIES.

UH, NO, I WAS JUST GONNA SAY, YEAH, SO LUCKILY WITH THE DETAILED AIR TRADE DATA, UM, WE ARE ABLE TO, UH, PARSE AND,

[00:45:01]

SO IN ASIA, UM, YOU KNOW, ZONING IN ON PARTICULAR COUNTRIES, AND ACTUALLY THAT AIR TRADE DATA HAS BEEN, UM, FED INTO A LOT OF THE, UH, PASSENGER AIR SERVICE DEVELOPMENT EFFORTS.

AS YOU KNOW, THE AIRPORT HAS PURSUED THOSE, UH, WITH ASIAN CARRIERS.

WE'VE ALSO INCLUDED THE AIR CARGO, UH, DATA GOING TO THOSE PARTICULAR COUNTRIES OR THOSE, THOSE REGIONS THAT THEY WOULD BE ABLE TO SERVICE, UM, YOU KNOW, WITH THEIR CONNECTING, UH, TRAFFIC AND THEIR CONNECTING INFRASTRUCTURE THERE.

SO YEAH, WE DO HAVE THAT DATA AND IT'S ALREADY BEING, OR IT'S ALREADY SUPPORTING, UM, THOSE PASSENGER OR SERVICE EFFORTS CURRENTLY.

REX, DID YOU HAVE ANYTHING TO ADD? YEAH, I'D JUST ADD THAT, YOU KNOW, IT WOULD BE SPECIFIC TO A CARRIER THAT WOULD BE TARGETED, UH, AND MOST LIKELY WOULD BE A, A, UH, NETWORK CARRIER FOR ASIA, WHICH PROVIDES ADEQUATE SERVICE TO MOST ALL OF ASIA, WHICH IS AN ADVANTAGE, EVEN MORE SO THAN ON THE PASSENGER SIDE.

'CAUSE CARGO IS, IS USED TO BEING CONNECTED, UH, NOT GOING DIRECT.

UH, THE ADVANTAGE IS, SO WE DIDN'T SPECIFICALLY MODEL THAT.

UH, WE DID DEVELOP SOME DATA ON WHAT THE TRUCKING COSTS SAVINGS WOULD BE, UH, BUT YOU WOULD ALSO, UH, THE BIG GATEWAYS HAVE AN ADVANTAGE IN, IN VOLUME, AND SO THEY HAVE LOWER RATES IN MOST CASES.

SO YOU'D REALLY HAVE TO MAKE THE CASE TO SPECIFIC SHIPPERS OR SHIPPER GROUPS, UH, THAT THE ADVANTAGES OF A DIRECT FLIGHT IN TERMS OF FASTER SERVICE AND AVOIDING MAYBE A TREACHEROUS OR AN, UH, DELAYED TRUCK, TRUCK TRIP, UH, OUTWEIGHS OR MITIGATES ANY OTHER ADVANTAGES THE BIG EIGHT WEIGHS HAVE.

THANK YOU, MR. UH, CO WILLS.

THANK YOU, MR. CHAIR.

UM, THIS, NOW I WANT TO, TO ECHO COMMISSIONER CHU, THIS SEEMS TO BE A REOCCURRING THEME, THE CONCEPT OF, OF INCREASED TRAFFIC FROM THE CONTINENT OF ASIA.

THIS PARTY BILL'S RECOMMENDATION, IT CAME UP IN YOUR INTERVIEWS IN TERMS OF, OF CARGO.

WHAT DOES GETTING READY, AND I'M TREATING THIS LIKE AN INEVITABILITY, AND MAYBE I OUGHT NOT TO, UH, BUT LET'S PRETEND IT IS, WHAT DOES GETTING READY LOOK LIKE? ARE WE READY? DO WE EXPECT A HUGE, UH, UH, CRASHING OF, OF DEMAND, OR WILL IT BE A SLOW ROLL? COULD Y'ALL WALK US THROUGH IF THAT LINE OF CONVERSATION CONTINUES AND THERE IS THIS PATHWAY OPENED UP MORE BROADLY, WHAT DOES THAT LOOK LIKE? ARE WE READY? HOW DO WE GET READY? UH, WELL, I WOULD SAY, I MEAN, THE EXISTING DEMAND IS BEING HANDLED MOSTLY VIA OTHER GATEWAYS, AND THEY, FOR THE MOST PART HAVE THE ABILITY TO INCREASE THEIR PIPE PIPELINE.

SO IT'S REALLY A MATTER OF GETTING ENOUGH VOLUME CONCENTRATED THAT CAN BE MATCHED UP TO THOSE ADVANTAGES.

UH, I WAS TALKING ABOUT BEFORE, IN TERMS OF BEING PREPARED, UH, IT DEPENDS ON WHAT, UH, WHAT'S LIKELY TO OCCUR.

IF IT'S A ONCE A WEEK CHARTER OR THREE, TWO, OR THREE FREIGHTERS A WEEK, UH, I THINK THAT COULD BE ADEQUATELY HANDLED.

IF IT WAS A DAILY FREIGHTER, YOU WOULD NEED MORE SPACE.

THAT'S WHAT, THAT'S WHAT THEY TOLD US WHEN, UH, WE TALKED TO THE, SO, AND, AND, AND AN IMPORTANT THING IS THAT BECAUSE YOU'RE, UH, YOU KNOW, ON THE OUTSIDE LOOKING IN AND DON'T HAVE THE ADVANTAGES THAT DALLAS, HOUSTON, AND LA AND O'HARE HAVE, UH, YOU HAVE TO BE CERTAIN THAT WHEN SOMETHING DOES OCCUR, THAT YOU CAN HANDLE IT AND HANDLE IT EFFICIENTLY.

UH, 'CAUSE THEY'RE LOOKING, THE FORWARDERS ARE LOOKING FOR AN EXCUSE TO STAY WHERE THERE ARE, I GUESS IS A SIMPLE WAY OF LOOKING AT IT.

SO DON'T GIVE THEM ANY EXCUSES AND, UH, MAKE SURE IT WORKS.

FLIGHT, UM, FILLS BOTH BUCKETS.

YOU CAN, I, CAN I ASK A, A CLEAR FOLLOW UP QUESTION, AND THIS IS MORE BROADLY SPEAKING AND LESS ON, ON, UH, THE PRESENTATION, BUT IT IS RELATED AS CARGO MAKES UP ROUGHLY, I BELIEVE 5%.

YOU SAID MS. KAVANAUGH OF THE, UH, REVENUE FOR, FOR THE AIRPORT IN TOTAL.

ROUGHLY, UM, COULD Y'ALL UNPACK THE RELATIONSHIP BETWEEN THE PRIMARY PRODUCT WE DELIVER, UH, THE CARGO THAT IT SEEMS TO BE GROWING, IF I'M NOT MISTAKEN, AND WHAT THAT THOSE TWO WORLDS PLAY OFF EACH OTHER AS WE MOVE FORWARD? I ASSUME MORE BUSINESS IS BETTER BUSINESS, UM, BUT I MAY BE MISTAKEN IF Y'ALL COULD BUILD THAT BRIDGE AND AND COLOR THAT IN FOR US.

BUT REALLY A SILLY QUESTION.

I FEEL LIKE I SHOULD KNOW THE ANSWER.

UH, WELL, THAT, THAT MAY RAJEEV YOU MAY WANNA SPEAK TO THAT ON A LARGER LEVEL.

AND THERE IS A TIE EVEN BECAUSE A NONSTOP ASIA PASSENGER

[00:50:01]

MM-HMM .

WOULD FILL THE CARGO BUCKET AND IT ALSO FILLS THE, UM, THE COMMERCIAL AIR SERVICE BUCKET.

BUT I'LL LET RAJEEV UNPACK THAT, IF YOU WILL.

YEAH, I MEAN, WHAT WE GET FROM THE CARGO AIRLINES IS LANDING FEES, RIGHT? PRIMARILY, AND ALSO FROM THE RENT THAT WE CHARGE FOR THE CARGO FACILITIES.

UM, DURING COVID, YOU KNOW, WHEN WE WERE LOOKING AT AIRPORTS AROUND THE COUNTRY, UM, YOU COULD SEE DIVERSIFICATION WAS HELPFUL, RIGHT? NOT BEING ENTIRELY, YOU KNOW, 95% OR 99% RELIANT ON PASSENGER TAR TRAFFIC KINDA HELPED.

SO AT THAT TIME, YOU KNOW, WHEN WE WERE DISCUSSING THIS EAST CARGO BUILDING WAS, WE WERE SAYING LIKE, WE NEED TO DIVERSIFY OUR MIX A LITTLE BIT MORE AND PURSUE CARGO.

AND THAT'S WHEN WE DECIDED TO BUILD THAT EAST CARGO BUILDING AT THAT TIME, YOU KNOW, AMAZON AND WITH THE, YOU KNOW, PEOPLE WERE MORE, UH, COMFORTABLE, YOU KNOW, WITH THE PACKAGE DELIVERIES, ET CETERA.

AND SO WE, YOU KNOW, TAGGED ONTO THAT AND WE BUILT THAT EAST CARGO BUILDING AT THAT TIME.

WHAT WE HAVE TO NOW KIND OF DO IS, YOU KNOW, UM, JUST AS YOU KNOW, CAMPBELL HILL KIND OF POINTED OUT, WE HAVE TO LOOK AT THE DEMAND THAT THE, THIS AREA IS GENERATING AND, YOU KNOW, MAKE THOSE INVESTMENTS.

UH, IF THOSE OPPORTUNITIES ARE THERE.

THROUGH OUR CARGO FACILITY, WE HAVE THE SPACE TO EXPAND CARGO FACILITIES.

AND WE ARE, YOU KNOW, AS OUR AIRPORT LAYOUT PLANNING, UH, TAKES INTO ACCOUNT WHERE THOSE FACILITIES CAN GO.

SO WE DO HAVE THOSE PARCELS KIND OF IDENTIFIED WHERE FUTURE CARGO EXPANSIONS CAN GO, BUT WE JUST HAVE TO MAKE SURE THAT WE ARE NOT BUILDING SOMETHING THAT, THAT IS, UH, THAT DOES NOT MEET THE DEMAND.

I MEAN, ON THE AIR, YOU KNOW, THE AIR TRAFFIC ON THE PASSENGER CARRIER SIDE, WE KNOW FROM THE USE AND LEASE AGREEMENT NEGOTIATIONS WHAT THE AIRLINES WERE PLANNING TO DO, YOU KNOW, THE EXPANSIONS OF SOUTHWEST AND DELTA.

SO WE GOT VERY COMFORTABLE WITH THE 26 GATES THAT WE ARE GOING TO DELIVER ON THAT, ON THE CARGO.

WE NEED MORE INFORMATION, A LITTLE MORE CONCRETE INFORMATION WE CAN BEFORE WE MAKE THOSE TYPE OF INVESTMENTS.

SO THAT'S KIND OF WHERE WE ARE RIGHT NOW ON THAT MIX.

BUT, UM, LIKE, YOU KNOW, AS IT WAS POINTED OUT, I MEAN, IT IS REALLY THOSE BIG INTERNATIONAL AIRPORTS WITH THOSE INTERNATIONAL GATEWAYS THAT HAVE THAT ADVANTAGE CURRENTLY.

BUT AS OUR INTERNATIONAL SERVICES, YOU KNOW, EXPAND, WE WILL HAVE TO REVISIT THIS AND SEE WHETHER THERE'S OPPORTUNITIES WHERE WE CAN GROW IN THAT AREA.

WONDERFUL.

AND THAT HISTORY IS ALSO VERY, UH, ILLUMINATING.

YEP.

ANY OTHER COMMENT? I HAVE ONE QUESTION.

UH, THANK YOU.

IN LOOKING AT THE, UH, RECOMMENDATIONS AND ACTION ITEMS, IT SEEMS LIKE THERE'S A WHOLE LOT THAT COULD BE DONE OR, OR TO DO EVEN BEFORE, YOU KNOW, UH, DECISIONS ARE MADE AS TO BEING ABLE TO HANDLE THE TRAFFIC, I GUESS IN ESSENCE, LIKE, DOES THIS, DOES SADDLE MORE HORSES THAN WE CAN RIDE? LIKE WHO'S GONNA DO ALL THE WORK? WELL, WE'RE GONNA BEEF UP THE, UH, AIR CARGO PORTAL ON OUR WEBSITE, FOR EXAMPLE, EXPAND IT, SHOW THE MAPS, PUT CONTACT NAMES IN THERE, ET CETERA.

WE HAVE A STAKEHOLDER RELATIONS GROUP FULLY STAFFED, THAT'S GIVING JOURNEY WITH A US PRESENTATIONS TO THE ROTARY CLUB AND TO COMPANIES.

THEY'RE ADDING THE TOP 5,100 COMPANIES WITHIN OUR PRIMARY CATCHMENT AREA.

THIS IS NOW A PIECE OF IT, AIR CARGO PRODUCING A LEAVE BEHIND THAT WE CAN LEAVE WITH BUSINESSES.

ULTIMATELY THOUGH, IT WILL BE UP TO THE BUSINESSES THAT DECIDE THROUGH THEIR FREIGHT FORWARDERS WHERE THEY'RE FLYING THEIR FREIGHTS.

SO IT'S THE NEXT YEARS NEAR TERM OR EDUCATIONAL JUST SUCH AS TODAY.

ANY COMMENTS? UH, ONE LAST ONE.

UH, MS. KOFF, I REALLY APPRECIATE THE ACTION ITEM LIST HERE.

UH, ON THE FIRST ITEM, WE'RE, UH, STARTING TO TALK TO DIFFERENT STAKEHOLDERS.

IS THAT PROCESS JUST STARTED OR HAS IT BEEN GOING ON FOR A LITTLE PERIOD OF TIME? WELL, IT'S BEEN GOING ON FOR A WHILE.

UH, WE, WE TALK TO LARGE MANUFACTURERS ALL THE TIME.

WE WORK CLOSELY WITH ALL THE LOCAL CHAMBERS OPPORTUNITY.

AUSTIN CARGO'S ALWAYS A PIECE OF WHAT WE CHAT ABOUT, BUT, AND THIS IS NOW A MORE FOCUSED AREA, UH, FOR US, IT WILL BECOME, I'M THINKING ABOUT ADDING A PARAGRAPH OR A SECTION TO OUR AIR SERVICE REPORT THAT YOU SEE EACH MONTH ON AIR CARGO.

SO IT'S ON YOUR RADAR IN A DIFFERENT LEVEL.

I WANNA KICK IT UP A NOTCH DURING THIS, UH, NEAR TERM.

[00:55:01]

ANY FINAL COMMENTS? IF NOT, WE REALLY APPRECIATE THIS, UH, PRESENTATION WITH US.

VERY SPECIAL.

I KNOW WE POSSIBLY DO THIS MAYBE ONCE A YEAR AND GETTING THESE UPDATES.

AND THIS IS, UH, REALLY, REALLY HELPFUL TO KNOW.

GO TO OUR, UH, UH, NEXT, UH, NEXT ITEM ON THE, UH, AGENDA IS THE BRIEFING ON JOURNEY WITH, UH, A US AND A EDP, UH, CAPITAL IMPROVEMENT PROGRAM, ACTIVE PROJECTS PROVIDED BY LYNN BROOK, DEPUTY CHIEF DEVELOPMENT OFFICER.

WE WANT TO THANK THE TEAM THAT ALSO, UH, MR. UH, SHEATH AND, UH, MR. EDWARDS, THANK YOU SO MUCH.

[6. Briefing on Journey with AUS (AUS AEDP/Capital Improvement Program) Active Projects provided by Lyn Estabrook, Deputy Chief Development Officer ]

WELCOME.

THEY'RE QUICKLY MOVING ALONG.

WELL, UH, GOOD AFTERNOON COMMISSIONERS.

I WANNA GO AHEAD AND START ON PAGE 42, WHICH IS THE OVERALL MAP FOR WE'VE, I KNOW WE'VE GOT SOME NEW-ISH STILL, UH, COMMISSIONERS, AND I JUST WANTED TO REMIND EVERYONE WHAT I'M FOCUSED ON THIS UPDATE, THAT'S EVERYTHING YOU SEE IN THAT, IN THAT RENDERING THERE, THAT MAP RENDERING, ALL THE KIND OF PURPLEY BLUE COLOR, THE BEAUTIFUL PURPLE COLOR, THAT'S THINGS THAT ARE ACTIVELY IN CONSTRUCTION, ALL OF THAT KIND OF ORANGEY GOLD COLOR, THAT'S EVERYTHING THAT'S IN DESIGN.

AND WE'VE OPENED SOME THINGS, AND THOSE ARE ALL IN GREEN.

UM, SO WE ARE ACTIVELY MOVING ALONG IN THIS PROGRAM.

WE, IT'S EXCITING TO SEE WHEN THE MAP CHANGES.

UM, THERE'LL BE A NEW CHANGE NEXT MONTH WITH THE INTEGRATED BAGGAGE HANDLING SYSTEM THAT'S ACTUALLY, UM, JUST RECENTLY MOVED TO DESIGN.

SO NEXT MONTH WE'LL SHOW THAT, THAT THAT HAPPENED VERY RECENTLY BEFORE THIS WAS PUBLISHED.

SO THAT'S EXCITING.

THAT'S THE AREA THAT WE'RE TALKING ABOUT.

EVERYTHING FROM THE CONCOURSES, THE MIDFIELD TAXIWAYS, THE NEW ARRIVALS, DEPARTURE HALL, THE YELLOW GARAGE, UM, ET CETERA.

SO THAT'S, UM, OR FOCUSED ON, IF YOU WANNA GO TO THE, THE NEXT PAGE, I'LL GO AHEAD AND GIVE AN UPDATE ON THE WEST INFILL THERE.

UH, I LOVE THESE PICTURES.

IT SHOWS THE MONUMENTAL STAIR THAT IS NOW, UH, AVAILABLE AND OPEN.

UM, YOU GO UP THOSE STAIRS AND THERE'S NOTHING BECAUSE THERE'S A CLUB, UM, THAT WILL BE UNDER CONSTRUCTION, BUT THE, UH, HISTORICAL A IPP ART IS SHOWN HERE IN THAT RENDERING BACK IN PLACE, ALL, ALL FOR THOSE TO SEE.

UM, AND IT'S A NEW BEAUTIFUL STAIR, UM, THAT GOES TO THAT CLUB, AS WELL AS THE ADDITIONAL NEW SURFACES THAT ARE, UH, AROUND THE STAIR AS WELL.

IF, IF YOU ARE FAMILIAR WITH THE AIRPORT, THERE'S A SIMILAR KIND OF STAIR ON THE OPPOSITE, UH, SIDE OF OUR CHECKPOINTS, AND IT HAS KIND OF A TRIANGLE AREA.

WE TOOK THAT AREA OFF.

AND SO WHEN YOU STEP DOWN IT, IT GOES TO A FLUSH, UH, LARGER AREA UNDERNEATH, WHICH IS, UH, THE NEW CHECKPOINT RIGHT BEHIND THAT.

AND SO THAT'S, UH, ANOTHER MILESTONE IN THIS PROJECT.

IF YOU WANNA GO, WANNA GO AHEAD AND GO TO THE NEXT PROJECT TO, YEAH.

UH, I WANTED TO SHOW THIS BECAUSE THIS IS OUR NEW AND IMPROVED, UH, PLAY SCAPE AND IS A PLAY SCAPE FOR KIND OF TODDLERS AND OTHER SMALLER CHILDREN.

IT'S NOT QUITE YET OPEN, BUT THIS, THIS EQUIPMENT GOT INSTALLED AND, UH, WE'RE DOING SOME FINAL TOUCHES, UM, IN AND AROUND THAT AREA.

AND SO WE'RE EXCITED TO HAVE THIS FROM FAMILY FRIENDLY AREA RIGHT IN FRONT OF THE, NEAR THE BATHROOMS. UM, AND SO, YOU KNOW, WHEN THE FAMILIES NEED TO, TO TAKE THEIR CHILDREN TO THE BATHROOMS, IT CAN ALSO KIND OF RELIEVE THEIR ENERGY AS WELL, UM, AND PLAY IN, IN OUR NEW, NEW AREA IN THIS AREA OF THE AIRPORT.

SO THAT'S REALLY EXCITING.

UM, AND THE OTHER PICTURE THERE TO CRANE LIFTING PART OF A BOARDING BRIDGE.

AND SO CRANES DO STILL NEED TO, TO MOVE THOSE.

WE'RE STILL INSTALLING SOME OF THOSE NEW BOARDING BRIDGES, AND THERE'LL BE ADDITIONAL NEW BOARDING BRIDGES THAT WILL WRAP AROUND THE AIRPORT THAT THIS PROJECT WILL ALSO, UM, DO FOR US.

SOME HISTORICALLY OLD BOARDING BRIDGES THAT WE MOVED FROM THE PREVIOUS AIRPORT TO THIS AIRPORT ARE NOW GOING TO BE COMPLETELY REPLACED.

AND SO THIS PROJECT WILL CONTINUE TO DO THAT, GOING AROUND THE BUILDING FOR A FEW MORE, UH, HISTORICAL OLD JET BRIDGES.

AND THEN I JUST WANNA TOUCH ON THE YELLOW GARAGE ALSO REALLY QUICKLY, WHICH IS THE NEXT PROJECT.

AND THIS, UH, IMAGE IS REALLY EXCITING AS WELL, BECAUSE IN THE FIRST IMAGE THERE ON THE LEFT, YOU'LL SEE THAT THEY'RE MOVING DOWN TOWARDS, UM, TOWARDS YOU IN THE PICTURE, WHICH IS ACTUALLY TOWARDS THE WEST IN THIS PICTURE.

AND, UH, TO DATE, THEY'RE AT LEVEL FOUR ON THE END, AND AS IT STEPS BACK, IT GOES UP IN SCALE, AND AT THE VERY END, YOU CAN KIND OF SEE IT.

THEY'RE AT THE SAME LEVEL, SO THEY HAVE TOPPED OUT IN THAT CORNER AT LEVEL SEVEN.

AND THAT'S WHAT'S SHOWN ON THE RIGHT THERE, THAT LEVEL SEVEN, WHICH IS THE VERY TOP CORNER.

SO THAT NORTH END HAS TOPPED OUT ON THE NORTHEAST, UM, CORNER, AND WE'RE EXCITED THAT

[01:00:01]

AND BEFORE NUIT, HOPEFULLY WE'LL HAVE ALL SEVEN LEVELS EVERYWHERE.

SO THAT'S A REALLY ANOTHER EXCITING MILESTONE AT THE AIRPORT.

AND WHEN YOU DO FLY, UH, HOPEFULLY YOU DO FLY THIS SUMMER TO A, TO A WONDERFUL DESTINATION.

THOSE CRANES, THOSE GINORMOUS CRANES YOU SEE WILL START TO COME DOWN, UM, SOON, AND THEY'LL BE USING SMALLER CRANES THAT YOU SAW IN THE PREVIOUS IMAGE AT ANOTHER CONTRACTOR.

SO YOU MAY BE SAD THAT THOSE CRANES ARE GOING AWAY, BUT THEY ARE A MAJOR MILESTONE SAYING THE LARGE HEAVY LIFTING HAS BEEN COMPLETED AND WE'RE MOVING ON TO, TO MORE FINESSING WORK, UM, WHICH IS AN EXCITING MILESTONE.

AND THAT'S THE UPDATE THAT I WANTED TO GIVE FOR THE CONSTRUCTION PROJECTS, UH, FOR THE AIRPORT FOR THIS MONTH.

I'M HAPPY TO ANSWER ANY QUESTIONS.

UH, ANY COMMENTS OR QUESTIONS? I HAVE A MS. BROCK, A PRESSING ONE.

UH, WHERE EXACTLY IS THAT PLAY SCAPE? SO IT IS, IT IS IN THE NEW, UM, WEST EN FILL WEST GATES.

SO ALL THE WAY AT THE END, IT'S THE GATES NEAR, UH, UNITED AND SOME OF THE OTHERS.

SO ALL THE NEW SECTION, ALL THE WAY AT THE END OF THE AIRPORT ON THE WEST END, AND THEN IT'S IN FRONT OF THE RESTROOMS. SO LIKE I SAID, WE HAVEN'T OPENED THAT LITTLE CORNER.

WE'VE OPENED UP ABOUT TWO OR THREE OF THE GATES ON THAT END, AND RIGHT NOW IT'S BEHIND A SCREENED AREA AS WE DO SOME FINAL TOUCHES AND PUNCH LISTS ON THAT WHOLE AREA.

ANY COMMENTS, QUESTIONS, MR. MR. COLE? THIS IS, UH, I NOT A, A FULLY THOUGHT OUT QUESTION.

I PROBABLY SHOULDN'T HAVE ASKED IT THEN.

UH, CONCOURSE M YOU MAY HAVE TOUCHED ON THIS IS JUST ABOUT TO MOVE INTO THE DESIGN PHASE, RIGHT? YES.

CONCOURSE M IS AROUND 60% DESIGN.

THAT'S REALLY EXCITED.

THAT'S REALLY COOL.

UH, COMMISSIONERS IS, UH, BRIEFING ON A US CONCESSIONS PROGRAMMING PRESENTED BY JOHN GALLO, DEPUTY CHIEF COMMERCIAL MANAGEMENT.

, ANY OTHER COMMENTS, QUESTIONS? AS ALWAYS, THANK YOU FOR YOUR PRESENTATION AND JUST THE PICTURES ARE SAY A THOUSAND WORDS TO US, SO IT'S VERY, VERY IMPORTANT TO SEE THAT AND SEE THE HOW WE'RE MOVING ALONG.

[7. Briefing on AUS Concessions Programming presented by John Gallo, Deputy Chief, Commercial Management]

THIS IS ON PAGE 68 OF OUR AGENDA.

THANK YOU, MR. CHAIRMAN.

THANK YOU COMMISSIONERS.

UH, JOHN GALLO, DEPUTY CHIEF FOR COMMERCIAL MANAGEMENT.

UM, HAPPY TO BRING TO YOU TODAY SOME INFO UPDATED INFORMATION ABOUT OUR CONCESSION PROGRAMMING EFFORTS, UH, WITH OUR TEAM.

SO I'LL KIND OF JUMP RIGHT INTO IT.

SO I WILL KIND OF FIRST GO OVER, UM, OUR PROGRAM OVERVIEW, OUR CURRENT PROGRAM OVERVIEW, UH, THEN KIND OF GO THROUGH, UH, CONCOURSE B, OUR PROGRAM VISION AS WE MOVE CLOSER TO OUR, THE RELEASE OF A SOLICITATION FOR CONCOURSE B.

WE'LL TALK ABOUT THE LEASING APPROACH AND, UH, SOME SOLICITATION INFORMATION.

THEN I'LL FEEL FREE TO AN OPEN IT UP FOR QUESTIONS AND ANSWERS IF THE CLICKER WANTS TO WORK.

OF TRAVELERS AGE IS 25 TO 34, WHICH IS OF COURSE NOT SURPRISING FOR AUSTIN, UH, WHICH HAS MANY YOUNG PROFESSIONALS, UH, WITH HIGH PAYING JOBS, LOOKING FOR EXPERIENCES, AND THEY HAVE THE DISPOSABLE INCOME TO SUPPORT, UH, UH, TRAVELING.

SO FIRST I'LL GO OVER SOME, UM, OUR CONCESSION PROGRAM SUMMARY, FUTURE CONCESSION PROGRAM GOALS, UH, PASSENGER GROWTH AND PAYMENT FORECASTS, AND, UH, WHAT KIND OF LEAD TOWARDS, UM, THE SIZE OF OUR NEW PROGRAM, AND THEN OUR FUTURE CONCESSION PLANS AND CONCEPTS.

BUT FIRST, UH, SUMMIT STATS ABOUT OUR 2025 PERFORMANCE.

UM, AS YOU CAN SEE, UH, WE SELL A LOT OF TACOS, A LOT OF BRISKET, A LOT OF BEER.

UM, WE HAVE OVER A THOUSAND LIVE MUSIC PERFORMANCES A YEAR THAT'S FULLY INTEGRATED INTO OUR CONCESSION PROGRAM.

UM, AND WHERE OUR CONCESSION AIRS WHEN THERE'S A LIVE MUSIC PERFORMANCE GOING ON, UH, THEY SEE ABOUT A 20% UPTICK IN SALES.

SO, UH, THE, IT'S, UH, PROBABLY THE BEST, UH, NOT TO BE, UH, A TWO BIAS, BUT THE BEST LIVE MUSIC PROGRAM OF ANY AIRPORT IN THE COUNTRY.

UM, ANOTHER KEY INDICATOR, AS YOU CAN SEE ALSO, UH, THAT SHOWS YOU THE HEALTH OF OUR CONCESSION PROGRAM IS OUR SALES PER EMPLOYMENT OF $15 AND 15 CENTS AS OF 2025.

UH, AND THAT'S ONE OF THE HIGHEST IN THE COUNTRY, AND IS A KEY INDICATOR OF HOW SUCCESSFUL, UM, OUR PROGRAM IS ON AVERAGE, UH, AIRPORT C AROUND $12, UH, FOR SALES PER EMPLOYMENT.

UM, AS YOU ALL KNOW, UH, A US IS, UH, THE FOURTH FASTEST GROWING AIRPORT AMONG, UH, LARGE, UM, AND MEDIUM HUB AIRPORTS.

UM, AND THIS IS A DIRECT REFLECTION OF THE SUCCESS OF OUR CONCESSION PROGRAM.

UM, OUR LATEST PASSENGER SURVEY SHOWS THAT 57% OF OUR PASSENGERS ARE FEMALE, AND ONE OF OUR LARGEST, UH, DEMOGRAPHICS

[01:05:01]

SO I'LL KIND OF GO INTO OUR CONCESSION PROGRAM GOALS AS WE MOVE FORWARD WITH THE PROGRAM AND SOME OF OUR TARGET CONCEPTS THAT WE'RE LOOKING AT FOR CONCOURSE B.

UM, UH, OUR FOUR GOALS REALLY FOCUS ON MODERNIZING THE PROGRAM, ENHANCING THE CUSTOMER EXPERIENCE, MAXIMIZING NON AERONAUTICAL REVENUE, UM, AND OF COURSE SUPPORT FUNDING FOR OUR GROWTH AT THE AIRPORT.

THE TARGET CONCEPTS RANGE FROM JUST ABOUT EVERYTHING THAT YOU WOULD EXPECT TO SEE, UH, AT AN AIRPORT FROM CASUAL DINING, UH, QUICK SERVICE RESTAURANTS, UH, SPECIALTY RETAIL SNACKS, UM, AUTOMATED RETAIL, AND OF COURSE PASSENGER SERVICES LIKE, UH, SPAS AND, UH, GAMING, STUFF LIKE THAT.

AND THOSE TARGET CONCEPTS KIND OF LEAD US TO OUR PROGRAM VISION, UM, AS WE START, UH, TO UNDERSTAND.

UH, BUT FIRST WE HAVE TO UNDERSTAND KINDA THE PASSENGER JOURNEY, UH, THAT PASSENGERS TAKE AS THEY'LL BE MOVING THROUGH OUR NEW FACILITIES AS IT RELATES TO OUR PROGRAM VISION FOR THE CONCESSIONS.

THE PASSENGER JOURNEY, UM, OF COURSE, WILL BE CHANGING WITH OUR NEW FACILITIES.

UM, AND THE PROGRAM THAT WE'RE DEVELOPING IN CONCOURSE B IS TO SUPPORT, UM, OUR PASSENGER FORECAST OF 25 MILLION EMPLOYMENTS, WHICH IS TARGET AROUND 2042.

UM, THAT TARGET ALLOCATION IS FOCUSED ON CONCOURSE A WITH ABOUT 44% OF OUR PASSENGERS, CONCOURSE B, ABOUT 56% OF OUR PASSENGERS, THE CONCOURSE, UH, AS FAR AS CONCOURSE B, UH, WE'RE DIVIDING UP CONCOURSE B INTO FOUR, UH, WHAT WE CALL CONCESSION NODES.

UH, THE CONCOURSE, UH, WILL OFFER A VARIETY OF RETAIL, FOOD AND BEVERAGE AND TRAVEL ESSENTIAL STORES.

THE LARGEST OF THIS, UM, WILL BE THE NORTH MARKETPLACE, AND THEN THE LARGEST, UH, SUB NODE WILL BE WHAT'S CALLED LABELED THERE.

THE WEST MARKET, UH, RESTROOMS WILL BE ACROSS FROM EACH CONCESSION NODE, AND LARGER HOLD ROOMS WILL BE ADJACENT, AND EACH NODE IS TO HELP SUPPORT ABOUT SIX TO EIGHT GATES PER AREA FOR THE INITIAL TOTAL OF 26 GATES.

THE NORTH MARKETPLACE, UH, WILL BE OUR PRIMARY CONCESSION HUB, AND WILL BE THE FIRST EXPERIENCE THAT DEPARTING CONCOURSE SPEED PASSENGERS WILL ENGAGE AS THEY ENTER FROM THE TUNNEL.

UH, THIS MARKETPLACE WILL HAVE APPROXIMATELY, UH, 38,000 SQUARE FEET OF SPACE FOR SUPPORTING, ORIGINATING AND CONNECTING PASSENGERS.

AND, UM, OUR OVERALL LOOK AND FEEL IS TO RESEMBLE AUSTIN'S STREETSIDE CAFE CONCEPTS THAT YOU WOULD NORMALLY SEE DOWNTOWN.

THE FOOD CONCEPTS WILL INCLUDE A DESTINATION RESTAURANT, GOURMET MARKET, UM, GOURMET COFFEE VENUE, INTERACTIVE BAR WITH FOOD CASUAL RESTAURANTS, AND A DESTINATION BAR.

UH, ON THE RETAIL SIDE.

UH, WE'LL SUP THIS WILL SUPPORT THE TRAVEL ESSENTIAL STORE, UH, TARGETED SPECIALTY RELA RETAIL LOCATION, AND A MULTI-BRANDED RETAIL LOCATION, UH, FOR LOCAL CONCEPTS AND PRODUCTS.

AND THIS WILL ALSO INCLUDE A FOOD HALL, WHICH, UH, THE STAR ON THE PICTURE SHOWS, UM, WHERE THE MAIN MUSIC STAGE WILL BE FOR CONCOURSE B.

SOME OF THE DISTINCTIVE ELEMENTS THAT WE'LL BE LOOKING AT FROM A DESIGN PERSPECTIVE, UH, FOR THE CONCESSIONAIRES TO INCORPORATE INTO THEIR PROPOSALS IS, LIKE I STATED, THAT S UH, SIDEWALK SEATING, UH, TO RESEMBLE SOME OF THE STREETSIDE CAFES YOU SEE DOWNTOWN.

UM, UH, IDEALLY THESE AREAS WILL BE DISTINCT TO EACH CONCEPT.

UM, WHILE EACH SPACE WILL NEED SIGNAGE, IT WOULD BE GREAT TO HAVE A FEW DISTINCT SIGNS, UH, SIMILAR TO THOSE THAT CAN BE FOUND DOWNTOWN.

UH, LIGHTING CAN HELP KIND OF SET THE STAGE AND THE MOOD, UH, CREATING A FESTIVE AND DRAMATIC ENVIRONMENT.

UH, THE FIRST, UH, UH, CONCESSION NODE PAST THE, UH, NORTH MARKETPLACE IS THE EAST SUB NODE.

THIS IS PRIMARILY FOR FOOD SERVICE, UH, WHICH WILL HAVE GOURMET COFFEE BAR WITH FOOD AND QUICK SERVE CONCEPTS.

UH, THE NEXT, UH, KIND OF LARGER NODE IS THE WEST MARKET, UH, WHICH WILL ALSO HOUSE THE SECOND MUSIC STAGE.

UH, THE WEST MARKET WILL HELP SERVE APPROXIMATELY 32% OF THE EMPLOYMENTS IN CONCOURSE B.

UH, THE AREA WILL SPAN ABOUT, UM, 18,000 SQUARE FEET AND WILL HOUSE A FAST CASUAL RESTAURANT, GOURMET MARKET, UM, CASUAL DINING AND A GOURMET COFFEE VENUE.

[01:10:02]

ON THE RETAIL SIDE, WE'RE LOOKING TO TARGET, UM, A CENT BOOKSTORE AND A MULTI CONCEPT RETAIL LOCATION.

AND, UH, THE AREA IN BLUE THERE, UM, IS ALSO A TARGETED FOR PASSENGER EXPERIENCE WELLNESS CONCEPTS LIKE A SPA.

AND THEN FINALLY, THE WEST SUB NODE, UM, UH, WILL BE SUPPORTING PASSENGERS AT THE VERY END OF THE CONCOURSE.

UH, THIS WILL PRI PRIMARILY PROBABLY BE SERVING CONNECTING PASSENGERS.

THIS AREA'S ABOUT A LITTLE OVER 10,000 SQUARE FEET.

UH, INCLUDES A, A GOURMET COFFEE LOCATION, A BAR WITH FOOD AND QUICK SERVE CONCEPTS, AND A BAR LOCATED AT THE VERY END OF THE CONCOURSE, UH, THAT YOU SEE THERE IN YELLOW.

UH, ON THE RETAIL SIDE, WE'RE JUST TARGETING A TRAVEL ESSENTIAL STORE, UH, TO BE PROGRAMMED IN THIS SUBNOTE AS WELL.

ONE THING THAT, WE'LL, I'LL GO INTO A LITTLE BIT LATER IN THE PRESENTATION, BUT I'LL BRING UP HERE ARE THESE EIGHT, UH, WHAT WE'RE CALLING SMALL BUSINESS KIOSKS AS PART OF A NEW PROGRAM THAT WE'RE ROLLING OUT.

UH, TO HELP SUPPORT, UH, LOCAL VENDORS THAT WANT TO SELL DIRECTLY WITHOUT HAVING TO WORK THROUGH A A CONCESSION ERROR.

THEY WOULD FILL OUT AN APPLICATION.

THESE KIOSK WILL BE PREBUILT AS PART OF THE PROGRAM.

AND SO BASICALLY IT'S KIND OF A PLUG AND PLAY PROGRAM WHERE THEY'LL SIGN SHORT TERM CONTRACTS, COME IN AND SELL PRIMARILY RETAIL ITEMS, UH, LIKE, UM, CONFECTIONARY ITEMS, UH, HOMEMADE JEWELRY, STUFF LIKE THAT.

NOW I'LL KIND OF GO INTO OUR LEASING APPROACH AND SOME SOLICITATION INFORMATION.

SO OUR PRIMARY SCHEDULE RIGHT NOW, UH, THIS IS IN FLUX, UM, BUT, UM, THAT REMAINS FLUID.

AND WE'RE GONNA BE WORKING WITH THE DESIGN TEAM TO ENSURE, UH, THAT WE HAVE ALL THE DOCUMENTS THAT WE NEED TO RELEASE, UH, THE, THE R UH, THE RFP.

AND SO, UH, BUT THIS IS OUR PRELIMINARY SCHEDULE AS OF NOW.

UH, LOOKING TO RELEASE, UM, MAYBE SOMETIME IN SUMMER, LATE FALL, MAYBE AS LATE AS, UH, LATER IN, UH, 2027.

JUST DEPENDS ON, ON HOW FAR WE GET ALONG AND DESIGN, UH, SO THAT WE CAN RELEASE THIS.

RFP AND PROPOSERS CAN, UH, HAVE A, UH, ACCURATE INFORMATION ABOUT WHAT THEY'RE GONNA BE DESIGNING.

SO OUR PRIMARY OPPORTUNITIES FOR INVOLVEMENT, UM, IN THE PROGRAM RANGE FROM OPERATING, UH, UNDER A PRIME AS PART OF A JOINT VENTURE, SUBLEASING FROM A PRIME, UH, WHERE, UH, THEY WOULD HAVE DIRECT CONTROL OF THE LOCATION, BUT JUST BE A SUBLEASE SEE OF A PRIME.

AND, UM, UH, AN EXAMPLE OF THAT CURRENTLY IS AMY'S ICE CREAM.

THERE IS SUBLEASE OF, OF AREAS, UM, THAT'S AN AREAS LOCATION, BUT THEY, THEY FULLY OPERATE THAT, THAT LOCATION WITHOUT THE SUPPORT OF THE PRIME OPERATOR.

AND THEN OF COURSE, SUPPORTING ROLES, UH, BEING A BRAND PARTNER, A VENDOR, A SUPPLIER DESIGNER, A CONTRACTOR.

UH, WHAT I TELL PEOPLE SOMETIMES IS SOMETIMES YOU JUST NEED A SHELF AND NOT A STORE, AND YOU HAVE TO START SMALL.

AND SO, UM, THERE'S PLENTY OF, OF GREAT BRANDS IN AUSTIN THAT, UH, THEY DON'T NECESSARILY NEED A STORE, BUT THEY WANNA SELL THEIR PRODUCTS, UH, WITHIN SOME OF OUR CURRENT LOCATIONS.

AND, AND THE PRIME CONCESSIONAIRES, UH, WORK WITH US TO IDENTIFY THOSE, THOSE BRANDS.

AND, UM, WE JUST CONNECT THEM TO THOSE, THOSE PRIME CONCESSIONAIRES TO BE ABLE TO SELL THEIR PRODUCTS IN THEIR STORES.

SO A JOINT VENTURE PARTNERSHIP IS BASICALLY WHERE THE SMALL BUSINESSES AND THE CONCESSION PRIMES PARTNER TOGETHER, UH, HAVE A, HAVE A FIRM BUSINESS RELATIONSHIP.

UM, THEY'RE USUALLY AN OWNERSHIP STAKE.

THE SMALL BUSINESS OWNER HAS TO PROVIDE A CERTAIN LEVEL OF CAPITAL, HAS TO PROVIDE A CERTAIN LEVEL OF BUSINESS AS WELL.

AND LIKE I TALKED ABOUT EARLIER, UH, THE SUB CON, UH, THE SUB CONCESSIONAIRE MODEL WHERE THE SMALL BUSINESS OWNER IS RESPONSIBLE FOR ALL THE FINANCIAL AND ADMINISTRATIVE MANAGEMENT AND CAPITAL INVESTMENT, UM, REQUIREMENTS TO OPERATE THE UNIT.

UH, PEOPLE CAN ALSO BE A FRANCHISER OR A LICENSER.

UM, THAT'S WHERE THEY JUST BASICALLY, UH, WORK WITH THE PRIME CONCESSIONAIRE.

THE PRIME CONCESSIONAIRE TOTALLY OPERATES IT ON THEIR BEHALF.

UM, THE, THE FRANCHISOR EARNS A NEGOTIATED PERCENTAGE OF GROSS SALES, UM, AND THEY JUST BASICALLY WORK TO HELP DO TRAINING, CURATE MENUS, STUFF LIKE THAT.

THEN, OF COURSE, AS A PRODUCT VENDOR WHERE THEY'RE JUST BRINGING IN THEIR PRODUCTS TO SELL DIRECTLY THROUGH THE PRIME.

AND OF COURSE, OUR SMALL BUSINESS, UM, KIOSK PROGRAM, WHICH I'LL GO INTO IN A LITTLE BIT HERE.

SO TYPICALLY SOME ANTICIPATED KEY LEASE TERMS THAT, UH, CONCESSIONAIRES WILL SEE, UM, IS THAT, UH, THEY'LL HAVE A, A MINIMUM CAPITAL INVESTMENT PER, PER UNIT THAT THEY'LL HAVE TO MEET,

[01:15:01]

UM, THE MINIMUM MIDTERM REFRESHMENT.

SO THESE ARE GONNA BE PROBABLY 12 YEAR CONTRACTS.

AND ABOUT MIDWAY THROUGH THAT, THEY HAVE TO REINVEST CAPITAL BACK INTO THE STORE TO THINGS GET NICKED AND DAMAGED AND FURNITURE BREAKS, AND WE WANT TO KEEP THINGS FRESH.

SO THEY'LL HAVE TO INVEST, REINVEST ABOUT 15% OF THAT INITIAL CAPITAL BACK INTO THEIR STORE.

AND THEN OF COURSE, THEY HAVE TO MEET MINIMUM OPERATING HOURS.

UH, THEY HAVE TO USE OUR CONSOLIDATED RECEIVING AND DISTRIBUTION CENTER, WHICH IS LOCATION WHERE ALL THEIR PRODUCTS GET SCREENED FOR SECURITY PURPOSES AND BROUGHT OVER TO THE TERMINAL.

AND THEN OF COURSE, THEY HAVE TO CONTRIBUTE TO OUR MARKETING FUND AND MEET OUR PRICING POLICY.

UH, THAT PRICING POLICY IS WHAT'S SOMETHING THAT WE CALL STREET PLUS 10.

THAT'S WHAT WE HAVE CURRENTLY, AND THAT'S WHAT WE'RE GONNA BE MOVING FORWARD INTO THE FUTURE, WHICH IS WHAT MOST AIRPORTS HAVE ACROSS THE COUNTRY.

UM, BASICALLY THAT MEANS THAT THEY HAVE TO SELL THE PRODUCT, UH, THAT'S COMPARABLE TO OTHER PRODUCTS ON THE STREET AT THE SAME PRICE.

AND, BUT THEY CAN, UM, UH, INCREASE THAT PRICE BY, UH, NO MORE THAN 10%.

AND THAT 10% HELPS TO COVER THE ADDITIONAL COST OF OPERATING AT AN AIRPORT, WHICH IS MUCH MORE EXPENSIVE THAN ON THE STREET.

UM, THEY'LL HAVE TO MEET, OF COURSE, OUR OPERATING HOURS, LIKE I TALKED ABOUT.

UM, WE'RE DEVELOPING A CONCESSION STANDARDS HANDBOOK THAT WILL BE INCORPORATED INTO ALL OF THEIR LEASES MOVING FORWARD.

UH, THIS HANDBOOK WILL INCLUDE THOSE OPERATING HOURS.

UM, USUALLY WE WANT THEM OPEN FOR FIRST, UH, FIRST DEPARTURE AND LAST DEPARTURE BASED ON THE ZONE THAT THEY'LL BE OPERATING OUT OF.

WE WANT HIGH CUSTOMER SERVICE STANDARDS.

UM, WE WORK WITH THEM ON DEVELOPING THEIR TRAINING PROGRAMS FOR NEW EMPLOYEES, AND THAT'LL BE IN OUR HANDBOOK AS WELL.

AND OF COURSE, THEY HAVE TO MEET OUR AIRPORT SECURITY REQUIREMENTS.

AND THAT HANDBOOK, UH, WE'LL BE OUTLYING OF COURSE, ALL OF THE CRDC REQUIREMENTS, UH, WHEN THEY OPERATE, WHEN THEIR VENDORS HAVE TO DELIVER THEIR PRODUCTS AND SO FORTH.

THEY HAVE TO MEET OUR WASTE MANAGEMENT POLICIES AND OUR SUSTAINABILITY POLICIES.

AND OF COURSE, UM, ANY ANCILLARY OFFICE SPACE AND STORAGE SPACE.

AND THE USE OF THOSE, UH, WILL BE OUTLINED IN THE HANDBOOK AS WELL.

UH, THE RENT STRUCTURE UNDER A CONCESSION IS A LITTLE BIT DIFFERENT THAN, IT'S NOT JUST, UH, WE'RE CHARGING THEM A RATE PER SQUARE FOOT.

UM, WE JUST, THE WAY WE PARTNER AND THE WAY OUR LEASES ARE STRUCTURED IS THAT, UH, WE, THE AIRPORT GETS A PERCENTAGE OF THEIR SALES.

AND SO THAT'S THROUGH TWO MECHANISMS. ONE IS THROUGH A MAG OR A MINIMUM ANNUAL GUARANTEE THAT IS SET FORTH IN THE RFP.

AND, UH, SO THAT'S A MINIMUM AMOUNT EACH YEAR, UH, DEVELOPED, DIVIDED BY, UM, BY EACH MONTH THEY HAVE TO PAY US AT A MINIMUM, REGARDLESS OF THEIR SALES, AND THEN OF COURSE, PERCENTAGE RENT.

SO IF THEY EXCEED THEIR MAG, UM, WE, EVERYBODY BENEFITS, RIGHT? SO, UM, UH, MOST OF OUR CURRENT FOLKS, UH, AND OPERATORS EXCEED THEIR MAG CONSISTENTLY.

AND, UH, SO WE GET A PERCENTAGE, UH, OF THOSE SALES OVER THEIR MAG.

AND OF COURSE, UH, FROM A SOLICITATION, UH, PROCESS, WE FOLLOW ALL CITY OF AUSTIN RULES AND POLICIES GOVERNING, UH, THE MANAGEMENT OF REVENUE CONTRACTS.

UM, AND THEN, UM, OUR CONCESSION LEASES, OF COURSE, WILL BE PRESENTED TO YOU, UM, UH, FOR, FOR APPROVAL.

AND THEN WE TAKE THOSE TO CITY COUNCIL FOR AWARD AS WELL.

UM, THE LEASES AREN'T BINDING UNTIL CITY COUNCIL HAS APPROVED THOSE AWARDS.

AND OF COURSE, OUR CEO HAS SIGNED OFF ON IT.

UH, ALL PROPOSALS MUST INCLUDE ALL THE UNITS IN THE PACKAGE.

SO IN THIS, UM, CONCOURSE BRFP, WE'LL BE HAVING FIVE FOOD AND BEVERAGE PACKAGES WITHIN THAT RFP AND TWO RETAIL PACKAGES.

AND SO TO BE SUCCESSFUL, YOU HAVE TO BID, UH, ON A COMPLETE PACKAGE, NOT JUST IF THERE'S MULTIPLE STORES IN A PACKAGE.

YOU JUST CAN'T SAY, I JUST WANT THAT ONE STORE.

YOU HAVE TO PUT TOGETHER A PROPOSAL THAT MEETS THE REQUIREMENTS WITHIN THE PACKAGE.

SO NOW I'LL KIND OF TALK A LITTLE BIT MORE ABOUT OUR SMALL BUSINESS KIOSK PROGRAM THAT WE'RE DEVELOPING.

AGAIN, THIS INITIAL PROGRAM, UH, WE'LL BE BUILDING OUT EIGHT KIOSKS LOCATED ADJACENT TO HOLD ROOMS FOR THE USE OF SMALL BUSINESS OWNERS THAT WANNA SELL DIRECTLY TO, UH, CUSTOMERS.

SOME OF THE TARGETED CONCEPT IS MORE SPECIALTY RETAIL, LIKE GIFT ITEMS, JEWELRY, STATIONARY, UM, TOYS AND GAMES AND PERSONAL CARE ITEMS. UM, ALTHOUGH WE'RE STILL WORKING ON THIS PROGRAM, INDICATIVELY, THESE WILL BE 12 MONTH CONTRACTS, UH, WHERE THEY'LL MEET ALL OF OUR OPERATING STANDARDS, JUST LIKE A NORMAL CONCESSIONAIRE WOULD.

UH, BUT WE WOULD ENGAGE THEM, ASSIST THEM, AND, AND POSSIBLY EVEN PARTNER THEM WITH A PRIME, UH, FOR THEM TO HELP AS PART OF A MENTORSHIP

[01:20:01]

PROGRAM FOR THEIR BUSINESS.

UM, THIS WILL BE A SEPARATE, THIS WON'T BE IN THIS, UH, RFP THAT WILL RELEASE FOR CONCOURSE B.

THIS WILL BE A SEPARATE PROGRAM.

AND SO THERE'LL BE AN APPLICATION PROCESS THAT'LL BE ON OUR WEBSITE, PEOPLE WILL BE ABLE TO FILL OUT, UM, AND THOSE WILL BE REVIEWED, UM, BY ME AND MY TEAM AND OUR PROCUREMENT DEPARTMENT.

UM, AS WE MOVE FORWARD, AGAIN, THEY'LL HAVE TO, UH, THE APPLICATION PROCESS WILL BE VETTED AND, UH, THOSE REQUIREMENTS, UM, WILL BE REVIEWED BY THE APPLICANT, AND WE'LL WORK WITH THEM TO KIND OF BUILD THEIR APPLICATION TOO, IF THEY NEED ASSISTANCE.

UH, BUT REALLY WHAT THIS IS, UH, DESIGNED TO DO IS KIND OF BREAK DOWN THOSE BARRIERS FOR PEOPLE TO COME INTO THE AIRPORT.

LIKE I SAID, THESE ARE CONTRACTS THAT LAST 12 YEARS.

UM, THEY DON'T COME UP THAT OFTEN.

AND SO THIS IS TO ALLOW MORE PARTICIPATION FROM THE COMMUNITY HERE AT THE AIRPORT.

UM, OUR INITIAL TIMELINE, UH, IT SAYS, UH, THAT THE APPLICATION PROCESS WOULD BE INITIATED IN 2027.

THAT'S MORE LIKE 2030.

THAT'S A TYPO, I APOLOGIZE.

UM, WE'LL, ONCE CONCOURSE B IS BUILT, UM, OR UNDER CONSTRUCTION, WE'LL START THE INITIAL APPLICATION PROCESS OF THIS PROGRAM, UH, TO IDENTIFY THE EIGHT BUSINESSES THAT WILL OPERATE OUT OF THOSE KIOSKS.

UM, AND THEN THERE'LL BE ABOUT A 60 TO 90 DAY APPLICATION PROCESS.

UM, THOSE MAY INCLUDE INTERVIEWS, UM, SITE VISITS AND QUESTION AND ANSWERS, UM, PROCESS, UH, THAT THOSE PEOPLE APPLYING CAN COME AND MEET WITH US DIRECTLY AND KIND OF GIVE THEM AN ORIENTATION ON OUR PROGRAM, WHAT IT'S LIKE TO WORK AT THE AIRPORT AND SO FORTH.

SO NEXT STEPS, UM, OF COURSE, WE'RE, WE'RE WORKING FEVERISHLY TO FINISH UP THE RFP, UM, WORKING WITH A GREAT CONSULTANT TEAM, UH, TO GET THAT DONE.

THEN WE'LL MOVE TO PRE-PROPOSAL CONFERENCE, HOPEFULLY SOMETIME IN THE FALL.

LIKE I SAID, THIS MAY, UH, IT'S ALL DEPENDENT UPON WHERE WE'RE WITH THE DESIGN TEAM OF THE CONCOURSE.

AND THEN, UM, THIS WILL BE ON THE STREET ANYWHERE FROM THREE TO SIX MONTHS.

WE'RE STILL WORKING ON THAT TIMEFRAME.

AND THEN THOSE PROPOSALS WILL BE DUE THEREAFTER.

AND THEN OF COURSE, WE'LL GO THROUGH OUR REVIEW PROCESS, WHICH COULD TAKE MONTHS AS WELL.

UM, IF YOU THINK ABOUT FIVE, UH, FOOD AND BEVERAGE PACKAGES, TWO RETAIL PACKAGES, THERE COULD BE MULTIPLE PROPOSALS FOR EACH PACKAGE.

YOU'RE, WE'RE LOOKING AT POSSIBLY, YOU KNOW, 50 PROPOSALS OR, OR NORTH THEREOF, UM, THAT WE HAVE TO REVIEW.

SO THAT TAKES SOME TIME BEFORE WE DO, UH, UM, IDENTIFY THE, THE AWARDEES AND TAKE THAT, UH, TO ADHERE TO THE COMMISSION AND TO COUNCIL.

AND, UH, WE POST ALL OF OUR INFORMATION ON OUR WEBSITE, UM, ON THE AIRPORT WEBSITE.

UM, AND, UM, ALL THAT CAN BE FOUND RIGHT HERE.

SO I'M HAPPY TO ANSWER ANY QUESTIONS AT THIS TIME.

THANK YOU FOR PRESENTATION, MR. GALLO.

WE'RE OPEN FOR COMMENTS OR QUESTIONS, MR. ETTER.

UM, THANK YOU.

THAT WAS VERY INTERESTING.

UM, JUST TO MAKE SURE I'M UNDERSTANDING YOU CORRECTLY, YOU HAVE TWO BID PACKAGES, ONE FOR THE PACKAGES, THE BIG PACKAGES, AND THEN LATER WHEN THE AIRPORT IS UNDER CONSTRUCTION, YOU'RE GONNA GO OUT TO SMALL BUSINESS.

CORRECT.

SO THERE'LL BE KINDA TWO OPPORTUNITIES.

UH, IT'S THE BIG RFP THAT WILL HAVE THE FIVE FOOD AND BEVERAGE PACKAGES AND THE TWO RETAIL PACKAGES, UH, THAT'S MORE, UM, AN OFFERING FOR PRIME COMPANIES AND THEIR PAR, THEIR JV PARTNERS, THEY'RE SMALL BUSINESS OWNERS THAT THEY'LL IDENTIFY HERE IN THE COMMUNITY.

UH, THAT COULD BE A MIX OF LOCAL BRANDS, NATIONAL BRANDS, REGIONAL BRANDS THAT THEY'LL BRING TO THE AIRPORT.

AND THEN LATER ON WE WILL INITIATE THE SMALL BUSINESS PROGRAM.

THAT WILL BE AN APPLICATION PROCESS WHERE PEOPLE CAN, UH, FILL OUT AN APPLICATION IF THEY IS SUCCESSFUL THROUGH THE APPLICATION PROCESS, THEY'LL BE GIVEN A ONE YEAR CONTRACT TO SELL, AND IT'S MORE OF A KIND OF A REVOLVING DOOR.

AND THEN AFTER THAT ONE YEAR IS UP ONE YEAR, UH, WE'LL GO TO THE NEXT SET OF APPLICANTS AND SO FORTH.

OH, OKAY.

I AM FASCINATED WITH, AND I THINK THAT, UM, THE MAJORITY OF THE GENERAL AIRPORT POPULATION IS NOT AWARE OF IS THE STREET PLUS 10 PRICING.

UM, IS IT, UH, ON THE LARGER PACKAGES OR DO YOU HAVE ANY SMALL BUSINESS GOALS FOR THEM? WE'RE WORKING WITH SMBR ON ON ESTABLISHING THOSE.

OF COURSE, THE A CDB PROGRAM HAS HAD A LOT OF CHANGES, UH, UNDER THE CURRENT ADMINISTRATION.

UM, AND SO WE'RE TAKING THE LEAD FROM SMBR AS IT AS IT RELATES TO GOAL SETTING, UH, FOR SMALL BUSINESS PARTICIPATION.

WONDERFUL.

GREAT.

I'M LOOKING FORWARD TO SEEING IT.

MR. ROUEN.

JOHN, THANKS FOR THE PRESENTATION.

UM, I THOUGHT THAT WAS REALLY GOOD, REALLY INFORMATIVE TO SEE EVERYTHING THAT IS IN MOTION.

I THINK THAT THE SMALL BUSINESS KIOSK PROGRAM IS A GREAT IDEA TOO.

LIKE YOU SAID, SOMETIMES SOME OF THOSE, UH, TENANTS ARE JUST SEEM LIKE THEY'VE BEEN THERE FOR A LONG TIME.

SO LEARNING ABOUT THE 12 YEARS IS INTERESTING.

I THINK THAT ONE THING THAT

[01:25:01]

UM, I THINK THAT JUST BASED ON ANECDOTALLY, IT SEEMS EVERY, EVERYONE THINKS THAT THE PRICES ARE HIGH.

AND, UM, I DO THINK IT'S, I DO THINK THAT IT'S GOOD AND HELPFUL TO SEE THAT THERE IS A STREET PLUS 10 SORT OF GUIDELINE, BUT I AM INTERESTED IN HOW Y'ALL EITHER CURRENT OR FUTURE ENFORCE THAT AND MAKE SURE THAT, UM, ESTABLISHMENTS AREN'T OVER OVERCHARGING AND WHETHER THEY'RE CHERRY PICKING HIGHER PRICES.

I'M SURE THAT THERE'S A WHOLE PROCESS THAT Y'ALL HAVE, BUT I'M JUST INTERESTED IN HOW THAT WORKS.

YEAH, SURE.

UM, SO YEAH, STREET PRICING IS, UH, VERY CONTROVERSIAL.

UM, OR PRICING AT AIRPORTS IS FOR CONCESSIONAIRES.

UM, BUT WE TRY NOT TO MAKE IT.

UM, YOU KNOW, LIKE I STATED EARLIER, IT'S EXPENSIVE TO OPERATE AT AN AIRPORT.

THERE'S OTHER COSTS AND FEES AND THE CAPITAL REQUIREMENT, UM, THE LIVING WAGE REQUIREMENTS SOMETIMES THAT WE, UH, PUT ON OUR CONCESSIONAIRES.

SO, UM, BUT MY TEAM GOES OUT, UH, CONTINUOUSLY, UH, TO AUDIT AND KEEP AN EYE ON THINGS.

WE DO FORMAL AUDITS, AND WE KIND OF DO INFORMAL SPOT CHECKS AS WELL.

UM, UH, SO ANYTIME MY TEAM IS OUT, UH, IN THE TERMINAL, THEY'RE KEEPING AN EYE ON THINGS.

UM, AND THEN THE CONCESSIONAIRES CURRENTLY, UM, CAN, UH, UPDATE THEIR PRICING TWICE A YEAR.

UM, WE'RE LOOKING TO ADJUST THAT BECAUSE OF THE WAY, UH, COMMODITIES ARE SO VOLATILE THESE DAYS.

THE PRICE OF EGGS, THE PRICE OF BACON, THE PRICE OF BEEF, UM, WE'RE KIND OF ADJUSTING OUR POLICY IN THE FUTURE THAT WE'LL ACTUALLY BE IMPLEMENTING, UH, SOON, UH, WITH AN ADJUSTMENT ON A NEW POLICY TO DO THAT FOUR TIMES A YEAR, UH, SO THEY CAN KIND OF KEEP UP WITH THAT STREET PRICING.

UM, AS I TELL OUR CONCESSIONAIRES WHO KIND OF COME TO US ASKING FOR AN INCREASE IN THAT PLUS 10, I SAY, WELL, YOU NEED TO WORK WITH YOUR STREET PARTNERS TO WORK WITH THEM TO, YOU KNOW, ADJUST THEIR PRICING AS NEEDED.

SO, UM, SO WE KEEP AN EYE ON IT.

UM, UM, AND IT'S SOMETHING THAT WE TAKE VERY SERIOUSLY.

AT THE END OF THE DAY, WE WANNA MAKE SURE THAT OUR CUSTOMERS ARE GETTING, UM, FEEL LIKE THEY'RE, WHEN THEY'RE SPENDING THEIR DOLLAR, THEY'RE GETTING A VALUE FOR THAT DOLLAR.

AWESOME.

AND OUR INDUSTRY DAY THAT WE HAD ABOUT THREE WEEKS AGO, THAT WAS VERY SUCCESSFUL.

YOU'RE WELCOME.

MR. ER, IN THE PAST COUPLE OF WEEKS I'VE BEEN THROUGH, UH, INTERCONTINENTAL DFW IN INDIANAPOLIS, AND I'VE NOTICED WHAT SEEMS TO BE A PICKUP IN THE ABILITY TO ORDER FROM A WAITING AREA AS OPPOSED TO ACTUALLY GOING TO A SITE WITHIN THE AIRPORT.

DO YOU ANTICIPATE IN B THAT BEING AN OPTION, OR IS IT SIMPLY TOO EARLY TO TELL? A LOT OF AIRPORTS HAVE, HAVE, HAVE KIND OF STRUGGLED WITH MOBILE ORDERING.

UM, REALLY WHAT I FIND, UH, THAT'S BEEN SUCCESSFUL IS THAT EACH VENUE KIND OF BRING THEIR OWN MOBILE ORDERING PRODUCT TO THE CUSTOMER.

UH, WHAT WE'VE FOUND IN THE PAST IS THAT PEOPLE DON'T WANT TO DOWNLOAD AN AIRPORT APP.

UM, THEY DON'T WANT ANOTHER APP ON THEIR PHONE.

THEY'RE USED TO HAVING THEIR STARBUCKS APP OR THEIR WHATABURGER APP AND GETTING THEIR POINTS ASSOCIATED, UM, WITH THEIR, THEIR LOYALTY POINTS WITH THOSE COMPANIES DIRECTLY SO THAT THEY CAN USE THEM ANYWHERE, UH, NOT JUST AT THE AIRPORT.

SO, UM, WE, WE, WE WORK WITH OUR PARTNERS TO KIND OF, UM, UH, HAVE MOBILE ORDERING CONCEPTS.

UM, BUT IT'S, IT'S KIND OF IN FLUX.

YOU KNOW, THERE WAS COMPANIES LIKE AT YOUR GATE, UM, THAT MANY YEARS AGO THAT THEY WOULD ACTUALLY DELIVER TO THE GATE.

YOU COULD ORDER IT THROUGH THEIR APP AND THEY WOULD GO PICK IT UP AND LITERALLY WALK IT OVER TO YOU, KIND OF LIKE A INTERNAL, UM, DOORDASH, SO TO SPEAK.

UM, AND THAT CONCEPT KIND OF WENT AWAY.

UM, AND, AND COVID KIND OF CHANGED THINGS.

SO PEOPLE ARE MORE, WE FOUND, ARE MORE, UH, LOYAL TO THEIR, THE BRANDS RATHER THAN TO AN AIRPORT APP WHERE WE COULD CONSOLIDATE ALL OF THAT.

AND SO, UH, WE WORK WITH OUR PARTNERS TO REALLY, UM, BRING THOSE OUT AND IDENTIFY THE PICKUP LOCATIONS AT THEIR VENUE WHERE CUSTOMERS CAN GO AND PICK UP THEIR PRODUCT.

THANKS.

I'M AGNOSTIC ON IT.

AND, UH, I'LL JUST SAY DFW CONTINUES TO BE A FREAKING HOT MESS.

THANKS, Y ANY COMMENTS, QUESTIONS? UH, UH, I REALLY, REALLY APPRECIATE THAT, UH, THIS PRESENTATION AND ALSO MAKING PEOPLE AWARE OF IT.

'CAUSE LIKE YOU SAID, A 12 YEAR CONTRACT IS LONG TIME BEFORE IT COMES BACK UP AGAIN BEFORE IT BECOMES AN RFP.

ARE Y ALL LOOKING, ANTICIPATING ANY MEETINGS TO KIND OF BRING THIS OUT BOARD TO THE BUSINESS COMMUNITY AND PUBLIC SO THEY'RE AWARE THAT IT'S GETTING READY TO COME IF THEY'RE NOT ALREADY MAYBE SET UP WITH THE CITY OF BOSTON GETTING RFPS, ET CETERA? ABSOLUTELY.

WE WORK A LOT WITH OUR COMMUNITY OUTREACH TEAM.

UM, WE'VE, UM, BACK IN FEBRUARY, UM, THE TEAM WENT OUT.

UH, OUR TEAM WENT OUT AND MET WITH 170 DIFFERENT BUSINESSES.

UH, THEY LITERALLY POUNDED THE PAVEMENT AND TALKED ABOUT OUR OPPORTUNITIES.

UM,

[01:30:01]

WE HAD OVER 300 PEOPLE SIGN UP FOR THAT AND ABOUT 200 SHOWED UP.

UM, WE PLAN ON DOING ANOTHER INDUSTRY DAY, PROBABLY LATER, KIND OF MIDSUMMER RIGHT NOW, TARGETING MAYBE, UH, JULY OR AUGUST.

SO WE KNOW THERE'S A LOT OF INTEREST IN OUR PROGRAM.

AND WHAT WE FOUND WHEN WE WERE HITTING THE STREET WAS THERE WAS A LOT OF FOLKS THAT DIDN'T KNOW WHAT WAS GOING ON AT THE AIRPORT, CORRECT.

AND WE WERE EDUCATING THEM FOR THE FIRST TIME.

AND SO, UM, WE'VE ALSO MET WITH ALL OF OUR COUNCIL MEMBERS AS WELL, UH, BRINGING THIS SAME INFORMATION TO THEM TO HELP GET THE WORD OUT, UH, WITHIN THEIR DISTRICTS AS WELL.

AND, UM, SO THE OUTREACH IS THERE AND WE WILL CONTINUE TO DO THAT.

THAT'S WONDERFUL TO HEAR.

ANY FINAL COMMENTS? IF NOT, THANK YOU, MR. GALLO.

ALRIGHT, WE'LL MOVE ON TO THE NEXT ITEM,

[8. Authorize two contracts for facility system and heating, ventilation, and air conditioning parts for Austin Aviation with Bearing Distributors Inc. and Austin Armature Works LP d/b/a Austin Armature Works, each for an initial term of three years with up to two one-year extension options in an amount not to exceed $400,000, divided between the contractors. Funding: $33,333 is available in the Operating Budget of Austin Aviation. Funding for the remaining contract term is contingent upon available funding in future budgets. [Note: This contract will be awarded in compliance with the City Code Chapter 2-9B (Minority-Owned and Women Owned Business Enterprise Procurement Program). For the goods required for this solicitation, there were no subcontracting opportunities; therefore, no subcontracting goals were established.] ]

UH, DISCUSSION AND ACTION ITEM.

UH, IT'S IT'S NUMBER EIGHT, UH, COMMISSIONERS.

WHAT WE'RE GONNA DO IS, UH, I'M GONNA READ THE ITEM, WE'LL TAKE A MOTION IN A SECOND, AND THEN, UH, PAUL PENA WILL, UH, BE PRESENTING, UH, ITEM NUMBER EIGHT, WHICH IS ON, UH, PAGE 1 0 9 OF YOUR AGENDA.

AUTHORIZED TWO CONTRACTS FOR FACILITY SYSTEM AND HEATING, VENTILATION AND AIR CONDITIONING PARTS.

AUSTIN AVIATION AND BEARING DISTRIBUTORS INC.

AND AUSTIN ARMATURE WORKS LP DBA AUSTIN ARMATURE WORKS EACH FOR AN, UH, INITIAL TERM OF THREE YEARS WITH UP TO TWO ONE YEAR EXTENSION OPTIONS, AN AMOUNT NOT TO EXCEED $400,000 DIVIDED BETWEEN THE CONTRACTORS FUNDING.

UH, $33,333 IS AVAILABLE IN THE OPERATING BUDGET OF AUSTIN.

AVIATION.

FUNDING FOR THE REMAINING CONTRACT TERM IS CONTINGENT UPON AVAILABLE FUNDING AND FUTURE, UH, BUDGETS.

NOTE, THIS CONTRACT WILL BE AWARDED IN COMPLIANCE WITH THE CITY CODE CHAPTER TWO DASH NINE B, MINORITY OWNED AND WOMEN OWNED BUSINESS ENTERPRISE PROCUREMENT PROGRAM.

THE GOODS REQUIRED FOR THIS SOLICITATION, THERE WERE NO SUBCONTRACTING OPPORTUNITIES, THEREFORE NO SUBCONTRACTING GOALS WERE ESTABLISHED AT THIS TIME.

COULD WE HAVE A MOTION ON ITEM NORRA? I THANK YOU MR. RETA.

UH, IS THERE A SECOND? THANK YOU, MR. BROCK.

THANK YOU, COMMISSIONERS.

UH, MR. PENA, WELCOME.

COMMISSIONERS.

PRETTY MUCH WRAPPED, WRAPPED UP WHAT I HAD TO SAY.

YES, THIS IS A, UH, I APPRECIATE THE HELP.

UM, THIS IS A, A AGREEMENT AS YOU STATED TO SUPPORT OUR H-V-A-H-V-A-C SYSTEMS, WHICH IS OUR AIR CONDITION HEATING AND VENTILATION SYSTEMS FOR OUR EXISTING AND FOR THE NEW INFRASTRUCTURE THAT THE A EDP WILL BE, UM, DEVELOPING.

BUT, UM, AS YOU STATED, UH, THIS WAS AN INVITATION FOR BID.

WE HAD SUBMITTED IT TO OVER 500 VENDORS THAT WERE REGISTERED WITH THE CITY OF AUSTIN.

AND ULTIMATELY, UM, BASED ON THE LOWEST BID, UH, WE SELECTED THE TWO, UM, THE TWO VENDORS THAT YOU HAVE CURRENTLY, UH, BEFORE YOU, WHICH IS AUSTIN ARMATURE AND THEN BEARING DISTRIBUTORS.

AND IT IS IMPORTANT TO NOTE THAT, UM, THE EXISTING CONTRACT THAT SUPPORTS THIS SERVICE EXPIRES IN AUGUST OF 2020.

SO I'LL OPEN IT UP FOR ANY QUESTIONS SPECIFICALLY FOR ME.

ANY COMMENTS OR QUESTIONS? I'M SORRY.

DID, DID I HEAR THE CONTRACT EXPIRES IN 2020? I'M SORRY.

2026.

THANK FOR THE CLARIFICATION MR. BROCK.

I APPRECIATE IT.

ANY COMMENTS OR QUESTIONS AT THIS TIME? IF NOT ALL IN FAVOR FOR THIS, UH, ITEM, RAISE YOUR RIGHT HAND.

MOTION PASSES, ASHLEY.

THANK YOU, MS. PENA.

NUMBER NINE IS ON PAGE 112 FOR OUR AGENDA.

ITEM

[9. Authorize a contract for construction services for the Midfield Investigations and Vehicle Checkpoint Project for Austin Aviation with Alpha Paving Industries, LLC, in the amount of $1,599,840 plus a $133,133 contingency for a total contract amount not to exceed $1,732,973. Funding: $1,732,973 is available in the Capital Budget of Austin Aviation. [Note: This contract will be awarded in compliance with City Code Chapter 2-9A (Minority-Owned and Women-Owned Business Enterprise Procurement Program) by meeting the goals with 19.04% MBE and 1.98% WBE participation.] ]

UH, LYNN BROOK WILL BE, UH, PRESENTING.

IT'S AUTHORIZED A CONTRACT FOR CONSTRUCTION SERVICES FOR THE MIDFIELD INVESTIGATION AND VEHICLE CHECKPOINT PROJECT FOR AUSTIN AVIATION WITH ALPHA PAVING INDUSTRIES LLC, THE AMOUNT OF $1,599,840 PLUS $133,133 CONTINGENCY FOR A TOTAL CONTRACT AMOUNT NOT TO EXCEED $1,732,973.

FUNDING OF $1,732,973 IS AVAILABLE IN THE CAPITAL BUDGET OF AUSTIN AVIATION.

NOTE THIS CONTRACT WILL BE AWARDED IN COMPLIANCE WITH CITY CODE CHAPTER TWO DASH NINE, A MINORITY OWNED AND WOMEN OWNED BUSINESS ENTERPRISE PROCUREMENT PROGRAM BY MEETING THE GOALS WITH 19.04% MBE AND 1.98% WBE PARTICIPATION.

IS THERE A MOTION ON THIS ITEM? SECOND.

SECOND, UH, MS. BROOK.

THANK YOU, CHAIR.

IT WILL ALLOW A TWO-WAY OPERATION, UH, TWO-LANE OPERATION, AND WILL BE ABLE TO ENHANCE THE NUMBER OF VEHICLES GOING THROUGH, UM, TO THE AIRFIELD.

THIS IS, UH, FOR A VE UH, VEHICLE CHECKPOINT, UH, KNOWN AS CHARLIE.

A PROJECT WILL ENHANCE SECURITY AT THE A AIR OPERATIONS AREA AND PROVIDE, UH, IMPROVE OPERATIONAL EFFICIENCY FOR VEHICLES ENTERING AND EXITING.

[01:35:01]

ANY COMMENTS OR QUESTIONS? UH, WHAT IS APPROXIMATE SQUARE FOOTAGE OF THIS? WHAT DOES THIS LOOK LIKE? IT'S A SMALLER, UH, VEHICLE GUARD SHACK, BUT IT DOES HAVE, UH, AN AREA FOR, UH, A, A WHAT I CALL A MINI RESTROOM.

UM, IT ALSO IS HEATED AND COOLED.

CURRENTLY, THE STAFF DO NOT HAVE ANY OF THOSE FACILITIES.

SO IF THEY'RE THERE, UM, LONG-TERM, THEY HAVE TO USE OTHER MEANS OF, OF RESTROOMS, YOU KNOW, PORT OF POTTY TYPE SITUATIONS.

SO NOT ONLY WE ARE PROVING THE ABILITY TO CREATE TRAFFIC, GOING BACK AND FORTH TWO WAYS, AND HAVING THAT GUARD MANAGE ALL OF THAT, BUT WE'RE ENHANCING, UM, THE SPACE FOR THE STAFF.

WELL, THANK YOU FOR THAT.

I, I THINK IT IS WELL NEEDED.

SOUNDS LIKE .

SO THANK YOU.

ANY FINAL COMMENTS? QUESTIONS? IF NOT, UH, IF EVERYBODY'S, UH, IF YOU'RE THE MOTION.

THERE'S BEEN A MOTION.

UH, MOTION A SECOND.

ALL IN FAVOR, PLEASE RAISE YOUR RIGHT HAND.

MOTION PASSED UNANIMOUSLY.

10 ON PAGE 117, UH, MS. UH, LINBROOK WILL ALSO PRESENT ON THIS ONE, AUTHORIZE ADDITIONAL EXPENDITURES FOR PROFESSIONAL SERVICES FOR A US BUILDING COMMISSIONING SERVICES FOR AUSTIN AVIATION WITH R-U-R-U-P, UH, INC.

UH, AND OUR LAST, UH, ACTION.

NO, WE HAVE TWO MORE, I'M SORRY.

UH, UH, ITEM NUMBER

[10.Authorize additional expenditures for professional services for AUS Building Commissioning Services for Austin Aviation with ARUP US, Inc., to increase the amount by $10,000,000 for a revised total contract amount not to exceed $34,000,000. Funding: $10,000,000 is available in the Capital Budget of Austin Aviation. [Note: This request is for additional expenditure authority only. MBE/WBE goals will be established if a change order is requested.] ]

TO INCREASE THE AMOUNTS BY $10 MILLION FOR A REVISED, UH, TOTAL CONTRACT AMOUNT NOT TO EXCEED $34 MILLION.

FUNDING OF $10 MILLION IS AVAILABLE IN THE CAPITAL BUDGET OF AUSTIN AVIATION.

NOTE THIS REQUEST FOR ADDITIONAL EXPENDITURE AUTHORITY.

ONLY MVE SLASH W GOALS WILL BE ESTABLISHED.

ESTABLISHED IF A, UH, CHANGE ORDER IS REQUESTED.

UH, IS THERE A MOTION? UH, MR. ELLER? THANK YOU A SECOND, MR. BROCK.

THANK YOU MR. ELLER AND MR. BROCK.

UM, MS. UH, ESTHER BROOKE? YES.

THIS REQUEST WILL ALLOW AUSTIN AVIATION TO CONTINUE ENGAGING QUALIFIED FIRM TO PROVIDE, UH, COMMISSIONING AND OPERATIONAL READINESS AND ACTIVATION TRANSITION FOR THE AIRPORT EXPANSION, AS WELL AS OUR ROLLING CIP PROJECTS.

AND THIS COMMISSIONING PROVIDES INDEPENDENT VERIFICATION OF CRITICAL BUSINESS BUILDING AND INFRASTRUCTURE SYSTEMS, AND PER, UH, SYSTEMS PERFORMED IN ACCORDANCE WITH DESIGN INTENT, OPERATIONAL REQUIREMENTS, AND THE CITY GOALS, COMPLIMENTS THE WORK SUPPORTING COORDINATION, THE ACTIVATION OF FACILITIES, INCLUDING TESTING, TRAINING, STAKEHOLDER COORDINATION, TRANSITION MANAGEMENT, AND READINESS ASSESSMENTS FOR ALL THE NEW FACILITIES.

MS. ES, ES, ESTHER BROOK, ANY COMMENTS, QUESTIONS, UH, MRTA? UM, IT LOOKS HERE LIKE THIS CONTRACT WAS AWARDED IN 24 ORIGINALLY.

IS THAT RIGHT? AND, UM, SO THEIR SERVICES, UM, ARE HELPING WITH ALL OF THE PLANNING AND CONSTRUCTION AND ON ALL THAT, THEY'RE LIKE A SAFETY CHECK.

I'M TRYING TO UNDERSTAND, I UNDERSTAND COMMISSIONING, THAT'S WHEN YOU BUILD IT AND THEN GETTING IT GOING, BUT YES.

SO IT DOES BOTH THE COMMISSIONING AS WELL AS THE OPERATIONAL READINESS AND ACTIVATION.

SO THAT'S TAKING WHAT I WOULD CALL COMMISSIONING TO THE NEXT STEP AND CREATING TRAINING PROGRAMS ON HOW DO YOU USE THIS BOARDING BRIDGE, FOR EXAMPLE, OR HERE'S YOUR NEW SPACES, LET'S MAKE SURE THE BUILDING AUTOMATION SYSTEM WORKS AND YOU CAN, YOU CAN USE THE SOFTWARE AND KNOW HOW IT WORKS.

UM, AND SO IT'S TAKING, UM, IT'S HELPING ENSURE THAT NOT ONLY OUR STAFF, BUT THE AIRLINE STAFF, RIGHT, HERE'S YOUR NEW SPACE.

THIS IS HOW YOU'RE GOING TO USE IT.

GIVE TOURS TO PEOPLE HERE, HERE ARE THE RESTROOMS, HERE ARE THE BREAK ROOMS. SO IT DOES ALL OF THOSE THINGS, INCLUDING CREATING, UH, MANUALS FOR US AND HOW TO OPERATE AND TAKE CARE OF THESE NEW FACILITIES.

EXCELLENT.

AND IS THIS, UM, ADDITION, UH, ESTIMATED TO LAST, UH, SUSTAIN THEM FOR ANOTHER YEAR, 12 MONTHS, 18 MONTHS? IS THERE THIS, THIS ADDITIONAL FUNDING WILL SUPPORT THE WHOLE EXPANSION PROGRAM.

SO HOPEFULLY TILL THE END.

EXCELLENT.

AND THEN JUST ONE MORE QUESTION.

THE MBE GOALS WILL BE ESTABLISHED IF A CHANGE ORDER IS REQUESTED, MEANING THEY'RE STILL DOING THE SAME SCOPE THEY'VE ALWAYS DONE, SO WE'RE NOT MESSING WITH ANYTHING.

CORRECT.

GOT IT.

MOTION PASSES UNANIMOUSLY.

ANY OTHER COMMENTS OR QUESTIONS? NOT ALL IN FAVOR OF THIS ITEM, RAISE YOUR RIGHT HAND.

LAST ITEM NUMBER, UH, 11 IS ON, UH, PAGE 120, UH, AUTHORIZE ADDITIONAL EXPENDITURES FOR THE PROFESSIONAL SERVICES CONTRACT FOR THE AIRPORT PROGRAM MANAGEMENT SUPPORT CONSULTANT SERVICES FOR AUSTIN AVIATION WITH WSB, UH, USA INC.

OUR, UH,

[11.Authorize additional expenditures for the professional services contract for the Airport Program Management Support Consultant Services for Austin Aviation with WSP USA INC., to increase the amount by $27,000,000 for a revised total contract amount not to exceed $67,000,000. Funding: $27,000,000 is available in the Capital Budget of Austin Aviation. [Note: This request is for additional expenditure authority only. MBE/WBE goals will be established if a change order is requested.]]

[01:40:01]

TO INCREASE THE AMOUNT BY $27 MILLION FOR REVISED CONTRACT AMOUNT NOT TO EXCEED $67 MILLION.

FUNDING OF $27 MILLION IS AVAILABLE IN THE CAPITAL BUDGET OF AUSTIN AVIATION.

NOTE THIS REQUEST IS FOR ADDITIONAL EXPENDITURE AUTHORITY ONLY MBE SLASH WBE GOALS WILL BE ESTABLISHED THAT CHANGE ORDER IS REQUESTED.

IS THERE A MOTION? MOTION? UH, MR. ER THANK YOU.

THAT'S MOTION.

SECOND, UH, UM, MR. HOUGHTON? THANK YOU.

UH, THIS IS ALSO MS. LANDESBERG.

SINCE THE DEMAND THAT THE AIRPORT CONTINUES TO GROW SIGNIFICANTLY, THIS IS IN RESPONSE TO THE, TO THE, THAT GROWTH.

UM, THE AIRPORT TAKE, THE CONSTRUCTION AND DESIGN TAKES, UH, IT'S VERY COMPLEX AND IT IS IN A HERE SECURE AND HIGHLY, UM, REGULATED ENVIRONMENT.

AND THE AIRPORT REQUIRES EXPERIENCED AIRPORT CONSTRUCTION AND PROGRAM MANAGEMENT PROFESSIONALS TO HELP SUPPORT THIS DEVELOPMENT AND TO ENSURE SUCCESSFUL DELIVERY.

AND THAT'S WHAT THIS TEAM WILL BE DOING.

ANY COMMENTS, QUESTIONS YET? UM, UH, MS. SHU, GO AHEAD.

MS. MS. SHU, GO AHEAD.

HMM.

I MEAN, UH, THAT WE DON'T HAVE ANY KIND OF TECHNOLOGY REFRESH OR ANYTHING, OR WE JUST ASSUME THE VENDOR WILL PROVIDE THAT.

CAN YOU RESTATE YOUR QUESTION, PLEASE? WE DIDN'T HEAR THE WHOLE THING.

YOU KNOW, IT'S A 10 YEAR, 10 YEAR CONTRACT, AND SO TYPICALLY THIS KIND OF HARDWARE GETS REFRESHED.

I'M JUST WONDERING WHETHER THAT WILL HAPPEN, UH, BY THE VENDOR SOMETIME, PARTICULARLY IF THERE'S SOME ADVANCE IN THE TECHNOLOGY, ET CETERA, ET CETERA.

THIS CONTRACT IS FOR PERSONNEL STAFF, NOT SOFTWARE.

OH, I SEE.

I, I TO, SORRY, I WITHDRAW.

I THOUGHT IT WAS A DISTRIBUTED ANTENNA.

PUBLIC WIFI.

WE'RE ON ITEM 11.

UH, NO THAT THIS IS FOR, UH, STAFF AUGMENTATION.

YOU KNOW MY QUESTION FOR 12 THEN.

YEAH.

WE'RE, I'M, UH, THAT WAS, UH, ON, ON PAGE ONE 20 OF OUR AGENDA.

UH, ANY OTHER COMMENTS OR QUESTIONS? MS. RIETTA? KIND OF THE SAME THING AS I ASKED BEFORE.

UM, THIS WAS IN 2026.

IS IT ANTICIPATED THAT THIS ADDITIONAL SERVICES WILL GET THEM TO THE END OF THE, THE IMPROVEMENTS? YES, IT IS.

AND THEIR SCOPE IS STILL THE SAME.

SO NO REASON TO REVAMP THEIR CORRECT MINORITY REQUIREMENTS QUESTION.

WE EXPANDED THE ADDITIONAL 26 GATES IS, IS PART OF THE ISSUE, IS THAT CORRECT? YES.

ANY OTHER COMMENTS, QUESTIONS? MS. BROCK? THIS QUESTION IN ESSENCE COVERS THE, THE LAST FEW PRESENTATIONS ON PAGE ONE 15 OF OUR MATERIALS.

THERE'S THE, UH, CITY OF AUSTIN COUNCIL BACKUP THAT DOES BREAK DOWN SORT OF THE, THE ULTIMATE GOALS.

UH, HOW DO WE GET OUR HANDS ON THIS FOR ANY THAT, YOU KNOW, IN THE FUTURE, UH, COME UP? SO THAT IS A, UH, SMBR UM, FORM THAT'S FOR CONSTRUCTION PROJECTS.

UM, WE CAN LOOK AT DOING THAT WHEN THERE ARE GOALS.

A LOT OF OUR PROJECTS ARE FEDERALLY, ARE FEDERAL GOALS.

SO IT'S A DIFFERENT METHODOLOGY ON FEDERAL, UH, GOAL PROJECTS OR NON GOAL PROJECTS.

UM, THIS PARTICULAR CONTRACT IS RELATED TO, AGAIN, STAFF AUGMENTATION.

SO IT'S REALLY A PEOPLE CONTRACT.

OH.

I'M NOT SUGGESTING THAT THERE NEEDS TO BE ONE FOR THIS ITEM, JUST IN GENERAL HOPING TO, TO BE ABLE TO RECEIVE THEM, UH, IN THE FUTURE.

CAN I ASK ONE GENERAL QUESTION? UM, JUST 'CAUSE I JUST 'CAUSE IT, IT'S A LOT AND I'M TRYING TO, BUT IT MAKES SENSE WHEN I LOOK BACK AND SEE THAT IT WAS THE FIRST, I GUESS, $40 MILLION CONTRACT WAS APPROVED IN 2022.

IS THIS HIGH LEVEL, I GUESS, IS IT, IS IT A GOOD WAY TO UNDERSTAND IT? JUST THAT IN 2022, THE, THE SCOPE HAS CHANGED SO MUCH THAT WE NEED TO GO AND INCREASE THIS TO MATCH WHAT WE'RE BUILDING, WHAT WE'VE NOW PLANNED IN THE LAST, IN THE INTERIM, YES.

WE'VE ADDED A LOT MORE PROJECTS AND INFRASTRUCTURE TO THAT, AND WE WANNA ENSURE THAT WE'VE GOT THE RIGHT CONSTRUCTION OVERSIGHT AS WELL FOR THOSE.

PERFECT, THANK YOU.

IT IS A LOT OF THAT IS REALLY, I MEAN, AS

[01:45:01]

THERE'S A GROWTH IN NOT ONLY THE CONCOURSE, BUT THE AD HALL.

THEREFORE THE CUP, THEREFORE THE UTILITIES, IT'S A, A ROLLING BALL.

RIGHT.

ANY, UH, COMMENTS? QUESTIONS? OKAY.

ALL IN FAVOR OF THIS ITEM, PLEASE RAISE YOUR RIGHT HAND.

UH, THAT'S UNANIMOUS.

THANK YOU, MR. THANK YOU, MR. CHAIRMAN.

THAT, UH, CONCLUDES OUR, UH, DISCUSSION.

I, UH, UH, DISCUSSION ACTION, UH, ITEMS THAT WE HAD.

UH, WE WILL MOVE ON TO, UH, UH, FUTURE AGENDA ITEMS. BUT I WANNA START OFF WITH, UH, MS. TRACY THOMPSON.

[Items 12 - 14 ]

TRACY THOMPSON, CHIEF COMMERCIAL OFFICER.

AND JUST IN ANTICIPATION, GOING BACKWARDS TO ITEMS 12, 13, AND 14 ON THE AGENDA, THOSE WERE ITEMS THAT WERE PREVIOUSLY BROUGHT TO THE COMMISSION AND APPROVED BY THE COUNCIL AT PREVIOUS COUNCIL ACTIONS.

SO WHAT WE DO FOR THE BENEFIT OF THE COMMISSIONERS IS JUST LET YOU KNOW THAT THE THINGS YOU VOTED ON GOT ACTUALLY APPROVED BY, BY COUNCIL.

SO THOSE ARE WHAT THEY ARE.

AND COMMISSIONERS, IF YOU HAVE ANY QUESTIONS ABOUT ANY PRIOR, UM, PRIOR ACTION ITEMS SPECIFICALLY, PLEASE FEEL FREE TO REACH OUT TO ME.

NO, REACH OUT TO JASON.

LET HAVE HIM REACH OUT TO JASON AND WITH ANY QUESTIONS.

AND SINCE HE'S NOT HERE, AND WE WILL, UH, BE PLEASED TO ANSWER ANY QUESTIONS ABOUT ANY PRIOR ITEMS SINCE YOU WEREN'T HERE AT THAT TIME.

DOES THAT WORK? COMMISSIONER? TWO? OKAY.

I'M ASSUMING THAT'S OKAY.

ALRIGHT.

TO FUTURE AGENDA ITEMS AND THANK YOU CHAIRMAN FOR THE OPPORTUNITY TO SPEAK, SPEAK, UH, ABOUT THE FUTURE, BUT I'M GONNA TALK ABOUT THE PRESENT.

SO MOVING ON

[FUTURE AGENDA ITEMS ]

AND ON BEHALF OF AUSTIN AVIATION, WE JUST WANNA THANK THE BOARD, THE NEW SLATE OF OFFICERS FOR BEING WILLING TO SERVE AS OFFICERS FOR OUR COMMISSION.

I KNOW THAT, THAT IT'S A LITTLE BIT OF AN EXTRA LIFT, SO WE JUST RESPECT YOU AND APPRECIATE YOU AS WE DO OUR NEW, NEW COMMISSIONERS.

AND OUR COMMISSIONERS HAVE SUPPORTED US FOR A LONG TIME.

IT'S KIND OF A CHANGEOVER.

SO WE JUST WANTED TO THANK YOU FOR YOUR, FOR YOUR SUPPORT AND YOUR, UM, AND YOUR ATTENDANCE.

SO, UH, THAT WAS NUMBER ONE.

NUMBER TWO IS JUST FOR YOUR INFORMATION.

ALSO, AVIATION HAD YESTERDAY LAUNCHED A SOLICITATION FOR A NEW RENTAL CAR OPERATORS IN OUR RENTAL CAR CENTER.

SO THERE IS A CONE OF SILENCE RELATED TO RENTAL CAR OPERATIONS, AND I JUST WANTED TO MAKE THE COMMISSION AWARE OF THAT IN CASE BY SOME RANDOM, UH, OPPORTUNITY SOMEONE APPROACHES YOU REGARDING THE SOLICITATION.

YOU CAN DIRECT THEM TO ME, UM, AND YOU DON'T HAVE, DON'T HAVE TO BE PUT IN THAT POSITION.

AND THAT'S ALL I HAD TO SAY.

THANK YOU, CHAIR.

THANK YOU FOR THAT UPDATE, MS. THOMPSON.

I APPRECIATE THAT.

A GIVEN FIELD AND HAS THE OPPORTUNITY TO UPSKILL, TO STAY IN THAT FIELD, UPSKILL, YES, MA'AM.

UH, NOW WE'RE, UH, AS WE CONTINUE WITH THE FUTURE AGENDA ITEMS, WANNA OPEN UP TO COMMISSIONERS IF THERE WERE ANY, UH, THOUGHTS ON FUTURE AGENDA ITEMS THAT YOU MAY HAVE AT THIS TIME? OKAY, MR. COLE? YES, SIR.

I, THERE'S A CONCEPT THAT I'VE BEEN PLAYING WITH FOR A WHILE AND IT'S NOT FULLY FORMED, BUT I'D LOVE Y'ALL HELP FORMING IT.

AND THAT IS THE CAREER NAVIGATION, THE OPPORTUNITY FOR FOLKS WHO ARE WORKING AT THE AIRPORT TO STAY WORKING AT THE AIRPORT.

I, I NOTICED, UH, I BELIEVE IN THE WRITTEN PORTION OF YOUR SECTION, MR. THOMAS, THAT THERE'S BEEN, UH, A NUMBER OF, OF VACANT POSITIONS FILLED, WHICH IS AWESOME.

AND MY QUESTION THEN IS, ARE THOSE VACANT POSITIONS BEING FILLED BY FOLKS WHO HAVE BEEN WORKING AT THE AIRPORT? DO WE HAVE THE OPPORTUNITY FOR FOLKS WHO ARE WORKING AT THE AIRPORT TO STAY AT THE AIRPORT AS THEY GROW? UH, WHAT DOES THAT LOOK LIKE? WHAT DO PARTNERSHIPS WITH, UH, LEADERS IN THE COMMUNITY LIKE AUSTIN COMMUNITY COLLEGE, OR WHAT HAVE YOU, NAME THE INSTITUTION IN REGARD TO UPSKILLING, RESKILLING? UH, THE GUT OF THE QUESTION IS TO NUCLEUSES, WHEN YOU START HERE, CAN YOU STAY HERE? AND IF NOT, UH, WHAT WOULD GETTING SOMEBODY TO, TO HAVE A FULL BLOSSOMING CAREER AT THE AIRPORT LOOK LIKE? UH, PRETTY, PRETTY SQUISHY.

UH, BUT THAT'S, THAT'S BEEN A QUESTION THAT I'VE BEEN PONDERING.

UH, THANK YOU MR. WILSON.

UH, THIS IS NOT FOR A VOTE ITEM, BUT JUST IS THERE A SECOND TO, UH, UH, MR. WILSON'S TO MOVE FORWARD AS A FUTURE AGENDA ITEM? THANK YOU, MR. BROCK.

APPRECIATE THAT.

THANK MR. WILSON.

AND JUST IN RESPONSE TO THAT, JUST SO I'M CLEAR, I HEARD TWO THINGS, SO AND SO, BUT WE CAN WORK ON YOU TO REFINE IT AND WE WILL DO THAT.

BEFORE WE, BEFORE WE, UH, BRING THIS BACK, I HEARD, UM, ONE WAS ABOUT GIVING YOU INFORMATION ABOUT VACANCIES.

HOW, HOW WE FEEL THEM, HOW THE TENURE OF OUR EMPLOYEES HERE, HOW WE TRAINING, UH, CAREER PATHS HERE, NUMBER ONE, SO WE CAN GET YOU AN, A BRIEFING ON THAT.

AND THE SECOND ONE, WHICH IS HOW WE, UH, DO OUTREACH FOR CAREERS IN AVIATION THROUGH, UH, EDUCATIONAL OR TRADE TYPE ORGANIZATIONS TO FIND CAREERS IN AVIATION AT OUR AIRPORT.

DID I GET THAT RIGHT? UH, WITH, WITH THE SLIGHT CAVEAT THAT IS, UH, THE CHIEF CONCERN, I HAVE NOT CONCERN.

THE, THE IDEA IS THAT IF AN INDIVIDUAL IS WORKING WITHIN

[01:50:01]

UPSKILL WILL, WILL THEY UPSKILL AND STAY AT THE AIRPORT WITH ALL OF THAT INSTITUTIONAL KNOWLEDGE AND, UH, HOPEFULLY, UH, GIVING BACK AND BUILDING UP SURE.

AN INSTITUTION THAT HELPED THEM GET THERE.

OKAY, WELL THANK YOU AND THANK YOU MR. ROCK ON THAT, UH, ITEM ALSO.